On February 1, 2024, Sanyal Motor Products issued 8% bonds, dated February 1, with a face amount of $60 million.

The bonds mature on January 31, 2028 (four years).

The market yield for bonds of similar risk and maturity was 10%.

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.

Required:

2-b. Prepare amortization schedules that indicate Barnwells 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 Sanyal and Barnwells investment on February 1, 2024.

4. Prepare the journal entries by both firms to record all events related to the bonds through January 31, 2026.