On February 1, 2022, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $60 million. The bonds mature on January 31, 2026 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. The fiscal year of Cromley ends December 31. Required: 1. Determine the price of the bonds issued on February 1, 2022. 2. Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity. 3. Prepare the journal entries to record the issuance of the bonds by Cromley on February 1, 2022, and all subsequent events related to the bonds through January 31, 2023 in both Cromley and Barnwell's general ledger. 1. Price of the bonds $58,061,067 60000000 0.09 Payment Cash Effective 2. Date Payment Interest Increase Outstanding in Balance Balance $58,061,067 07/31/22 $2,700,000 $2,903,053 $203,053 $58,264,120 01/31/23 $2,700,000 $2,913,206 $213,206 $58,477,326 07/31/23 $2,700,000 $2,923,866 $223,866 $58,701,193 01/31/24 $2,700,000 07/31/24 $2,700,000 $2,935,060 $235,060 $58,936,252 $2,946,813 $246,813 $59,183,065 01/31/25 $2,700,000 $2,959,153 $259,153 $59,442,218 07/31/25 $2,700,000 01/31/26 $2,700,000 Totals $2,972,111 $272,111 $59,714,329 $2,985,716 $285,716 $60,000,046|| ### $23,538,979|######## Date 02/01/22 07/31/22 12/31/22 01/31/23 General Journal 0.5 2700000 Debit Credit