On February 1, 2021, Cromley Motor Products issued 7% bonds, dated February 1, with a face amount of $60 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 $60,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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 Return to General Journal Debit Credit 2,100 300X 2,400 No Date 1 July 31, 2021 Cash Discount on bonds payable Interest revenue 2 December 31, 202 Interest receivable 2,100 x Discount on bonds payable 300X Interest revenue 2,400x As 3 January 31, 2022 Cash Interest receivable 4 July 31, 2022 Cash Prev 1 of 3 Next > 2,100 2,100 2 100 Discount on bonds payable Interest revenue 300 2,400 5 December 31, 202 Interest receivable 2,100 Discount on bonds payable 300x Interest revenue 2,400 6 January 31, 2023 Cash Interest receivable. 2,100 2,100 Return No Date 1 July 31, 2021 Interest expense General Journal Discount on bonds payable Cash 2 December 31, 202 Interest expense Discount on bonds payable Interest payable January 31, 2022 Interest payable Cash 300 000 10 Debit Credit 2,400x 300 x 2,100 2,400x 300x 2,100 2,100 2,100 4 July 31, 2022 Interest expense 2,400 Discount on bonds payable Cash 300x 2,100 * * 5 December 31, 202 Interest expense 2,400 Discount on bonds payable Interest payable 300 2.100 6 January 31, 2023 Interest payable Cash 2,100 2.100x