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On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $85 million. The bonds mature on January

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On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $85 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 $85,000 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 ces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 3 Req 4 Cromley Reg 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 to maturity. epare the journal entries to record the issuance of the bonds by Cromley and B. 1. repare the journal entries by both firms to record all subsequent events related to Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 3 Req 4 Cromley Reg 4 Barnwell Prepare amortization schedules that indicate Cromley's effective interest expense for each maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.) Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance 1 2 3 4 5 6 7 8 Totals Reg 1 Reg 28 > Reg 1 Reg 2A Req 2B Req 3 Req 4 Cromley Req 4 Barnwell Prepare amortization schedules that indicate Barnwell's effective interest revenue for each inte maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.) Payment Cash Payment Number Effective Interest Increase in Balance Outstanding Balance 1 2 3 4 5 6 7 8 Totals

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