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. (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.)

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

2.prepare amortization schedules that indicate Cromleys 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
2
3
4
5
6
7
8
Totals	$0	$

3. Prepare amortization schedules that indicate Barnwells effective interest revenue 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
2
3
4
5
6
7
8
Totals	$0	$0	$0

4. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwells investment on February 1, 2021. (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	February 01, 2021	Cash
		Discount on bonds payable
		Bonds payable
2	February 01, 2021	Investment in bonds
		Discount on bond investment
		Cash