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Problem 14-5 (Algo) Issuer and investor; effective interest; amortization schedule; adjusting entries [LO142] On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February

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Problem 14-5 (Algo) Issuer and investor; effective interest; amortization schedule; adjusting entries [LO142] On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $70 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 semiannuaily on July 31 and January 31. Barnwell Industries acquired $70,000 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.) 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 Barnweli's investment on February 1,2021. 4. Prepore the journal entries by both firms to record all subsequent events related to the bonds through January 31,2023 , Complete this question by entering your answers in the tabs below. Record the payment of interest for Cromley Company. Record the accrued interest for Cromley Company. Record the payment of interest for Cromley Company. Record the payment of interest for Cromley Company. Record the accrued interest for Cromley Company. Record the payment of interest for Cromley Company. Record the receipt of interest for Barnwell Company. Record the accrued interest for Barnwell Company. Record the receipt of interest for Barnwell Company. Record the receipt of interest for Barnwell Company. Record the accrued interest for Barnwell Company. Record the receipt of interest for Barnwell Company

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