On February $1,2024,$ Sanyal Motor Products issued $12\%$ bonds, dated February $1,$ with a face amount of $$85$ million.

The bonds mature on January $31,2028($four years$).$

The market yield for bonds of similar risk and maturity was $14\%.$

Interest is paid semiannually on July $31$ and January $31.$

Barnwell Industries acquired $$85,000$ of the bonds as a long$-$term investment.

The fiscal years of both firms end December $31.$

Required:

$1.$ Determine the price of the bonds issued on February $1,2024.$

$2-$a$.$ Prepare amortization schedules that indicate Sanyal$$s effective interest expense for each interest period during the term to maturity.

$2-$b$.$ Prepare amortization schedules that indicate Barnwell$$s effective interest revenue for each interest period during the term to maturity.

$3.$ Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell$$s investment on February $1,2024.$

$4.$ Prepare the journal entries by both firms to record all events related to the bonds through January $31,2026.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$ Req $1$

Req $2$A

Req $2$B

Req $3$

Req $4$ Sanyal

Req $4$ Barnwell

Prepare amortization schedules that indicate Sanyal's effective interest expense for each interest period during the term to maturity.

Note: Do not round intermediate calculations. Enter your answers in whole dollars. Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity.

Note: Do not round intermediate calculations. Enter your answers in whole dollars. Journal entry worksheet

Record the payment of interest for Sanyal Company.

Note: Enter debits before credits. Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

Record the receipt of interest for Barnwell Company.

Note: Enter debits before credits.

$\backslash$begin$\{$tabular$\}\{|$c$|$l$|$l$|$l$|\}$

$\backslash$hline Date & General Journal & Debit & Credit $\backslash \backslash$

$\backslash$hline July $31,2024$ & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash (\backslash$square $\backslash )$

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