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.)

Price of the bonds issued on February 1, 2021 $57,980,176

Cromleys

Amortization Schedule
Payment Number	Cash payment	Effective Interest	Increase in Balance	Outstanding Balance
				$57,980,176
1	$2,100,000	$2,319,207	$219,207	$58,199,383
2	$2,100,000	$2,327,975	$227,975	$58,427,358
3	$2,100,000	$2,337,094	$237,094	$58,664,453
4	$2,100,000	$2,346,578	$246,578	$58,911,031
5	$2,100,000	$2,356,441	$256,441	$59,167,472
6	$2,100,000	$2,366,699	$266,699	$59,434,171
7	$2,100,000	$2,377,367	$277,367	$59,711,538
8	$2,100,000	$2,388,462	$288,462	$60,000,000
Total	$16,800,000	$18,819,823	$2,019,824

Barnwells

Amortization Schedule
Payment Number	Cash payment	Effective Interest	Increase in Balance	Outstanding Balance
				$57,980
1	$2,100	$2,319	$219	$58,199
2	$2,100	$2,328	$228	$58,427
3	$2,100	$2,337	$237	$58,664
4	$2,100	$2,347	$247	$58,911
5	$2,100	$2,356	$256	$59,167
6	$2,100	$2,367	$267	$59,434
7	$2,100	$2,377	$277	$59,711
8	$2,100	$2,388	$288	$60,000
Total	$16,800	$18,820	$2,020

Required: 1. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwells investment on February 1, 2021.

2. CROMLEY Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023. 1. Record the payment of interest for Cromley Company. 2. Record the accrued interest for Cromley Company. 3.Record the payment of interest for Cromley Company. 4. Record the payment of interest for Cromley Company. 5. Record the accrued interest for Cromley Company. 6. Record the payment of interest for Cromley Company.

3. Barnell Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023. 1. Record the payment of interest for Cromley Company. 2. Record the accrued interest for Cromley Company. 3.Record the payment of interest for Cromley Company. 4. Record the payment of interest for Cromley Company. 5. Record the accrued interest for Cromley Company. 6. Record the payment of interest for Cromley Company.