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Just need Requirement 3 (the amortization table) When Patey Pontoons Issued 4% bonds on January 1, 2021, with a face amount of $740,000, the market
Just need Requirement 3 (the amortization table)
When Patey Pontoons Issued 4% bonds on January 1, 2021, with a face amount of $740,000, the market yleld for bonds of similar risk and maturity was 5%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their Issuance by Patey on January 1, 2021. 3. Prepare an amortization schedule that determines Interest at the effective rate each period. 4. Prepare the Journal entry to record Interest on June 30, 2021. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its Income statement for the year ended December 31, 2021? (Ignore Income taxes.) 7. Prepare the appropriate Journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 Req 5 and 6 Req 7 Prepare an amortization schedule that determines interest at the effective rate each period. (Round intermediate calculations and final answers to the nearest whole dollar.) Semiannual Interest Period-End Cash Interest Bond Interest Expense Discount Amortization Carrying Value $ 713,473 S 14,800 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 Total $ 14,800Step by Step Solution
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