On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $65 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $65,000 of the bonds as a long-term investment. The fiscal years of both firms end 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 issued on February 1, 2021. 2-a. Prepare amortization schedules that indicate Cromley'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 Cromley and Barnwell's investment on February 1, 2021. 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023. X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Reg 3 Req 4 Cromley Req 4 Barnwell Determine the price of the bonds issued on February 1, 2021. (Do not round intermediate calculations. Enter your answer in whole dollars.) Price of the bonds Req 1 Req 2A Req 2B Req3 Req 4 Cromley Req 4 Barnwell Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.) Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance 1 $ 1,950,000 1,950,000 2 3 4 5 6 7 8 Totals $ 3,900,000 $ 0 $ 0 Req 1 Req 2A Req 2B Reg 3 Req 4 Cromley Req 4 Barnwell Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell's investment on February no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not rou intermediate calculations. Enter your answers in whole dollars.) No Credit 1 Date General Journal February 01, 2021 Cash Discount on bonds payable Bonds payable Debit 60,623,716 4,376,284 65,000,000 2 February 01, 2021 Investment in bonds Cash 60,623,716 X 60,623,716 X Req 1 Req 2A Req 2B Req 3 Req 4 Cromley Req 4 Barnwell Prepare the journal entries by Cromley to record all subsequent events related to the bonds through January 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.) No Date General Journal Debit Credit 1 July 31, 2021 407,324 x Interest expense Interest payable Discount on bonds payable 325,000 X 82,324 X Req 1 Req 2A Req 2B Req3 Req 4 Cromley Req 4 Barnwell Prepare the journal entries by Barnwell to record all subsequent events related to the bonds through Janu required for a transaction/event, select "No journal entry required" in the first account field. Do not round Enter your answers in whole dollars.) View transaction list X X > 1 Record the receipt of interest for Barnwell Company. 2 Record the accrued interest for Barnwell Company. 3 Record the receipt of interest for Barnwell Company. 4 Record the receipt of interest for Barnwell Company. 5 Record the accrued interest for Barnwell Company. Credit 6 Record the receipt of interest for Barnwell Company