Problem3 When Patey Pontoons issued 6% bonds on January 1, 2021, with a face amount of $840,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and 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 at January 1, 2021 2. Prepare the journal entry to record their issuance by Patey on January 1, 2021 3. Prepare an amortization schedule that determines interest at the effective rate each period 4. Prepare the journal entry to record interest on June 30, 2021 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2021? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2024. . Prev Question 1 of 9 Total 1 of 9 Visit question mapNext Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 and 6 Reg 7 Prepare an amortization schedule that determines interest at the effective rate each period. (Round intermediate calculations and final answers to the nearest whole dollar.) . Semiannual Interest Period End 01/01/2021 Cash Interest Bond Interest Expense Discount Amortization Carrying Value 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 Total TABLE 3 Future Value of an Ordinary Annuity of $1 (1+1-1 FVA= 1 n/1 0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 20.0% 1 2 1.0000 2 0900 1.0000 1.0000 1.0000 2.0100 2.0150 2.0200 3.0301 3.0452 3.0604 4,0604 4.0909 4.1216 5.1010 5.1523 5.2040 3 1.0000 2.0250 3.0756 4.1525 5.2563 1.0000 2.0300 3.0909 4.1836 5.3091 1.0000 1.000D 2.0350 2.0400 3.1062 3.1216 4.2149 4.2465 5.3625 5,4163 1.0000 2.0450 3.1370 4.2782 5.4707 1.0000 2.0500 3.1525 4.3101 5.5256 1.0000 2.0550 3.1680 4.3423 5.5811 1.0000 2.0500 3.1836 43746 5.6371 1.0000 20800 3.2464 1.0000 2.0700 3.2149 4.4399 5.7507 1.0000 2.1000 3.3100 4.6410 6.1051 1.0000 2.1100 3.3421 4.7097 6.2278 3.2781 4.5731 5.9847 1.0000 2.1200 3.3744 4.7793 6.3528 4 1.0000 2.2000 3.6400 5.3680 7.4416 4.5061 5.8666 5 6.9753 6 6.1520 6.2296 6.3081 6,3877 6.4684 6.5502 6.6330 7 7.2135 7.3230 7.4343 7.5474 7.6625 7.7794 7.8983 8 8 8.2857 8.4328 8.5830 8.7361 8.7361 8.8923 9.0517 9.2142 9 9.3685 9.5593 9.7546 9.9545 10.1591 10.3685 10.5828 10 10.4622 10.7027 10.9497 11.2034 11.4639 11.7314 12.0061 6.7169 8.0192 9.3800 10.8021 12.2882 6.80196.8881 8.1420 8.2669 9.5491 9.7216 11.0266 11.2563 12.5779 12.8754 8.3938 9.8975 7.1533 8.6540 10.2598 11.9780 13.8164 7.3359 8.9228 10.6366 12.4876 14.4866 7.5233 7.7156 7.9129 9.2004 9.4872 9.7833 11.0285 11.4359 11.8594 13.0210 13.5795 14.1640 15.1929 15.9374 16.7220 8.1152 10.0890 12.2997 14.7757 17.5487 9.9299 12.9159 16.4991 20,7989 25.9587 11.4913 13.1808 11 11.5668 11.8633 12.1687 12.4835 12.8078 13.1420 13.4864 13.8412 13.8412 14.2068 14.5835 12 12.6825 13.0412 13.4121 13.7956 14.1920 14.6020 15.0258 15.4640 15.9171 16.3856 13 13.8093 14.2368 14.6803 15.1404 15.6178 16.1130 16.6268 17.1599 17.7130 18.2868 14 14.9474 15.4504 15.9739 16.5190 17.0863 17 6770 18.2919 18.9321 19.5986 20.2926 15 16.0969 16.6821 17 2934 17.9319 18.5989 19.2957 20.0236 20.7841 21.5786 22.4087 14.9716 15.7836 16.6455 17.5603 18.5312 19.5614 16.8699 17.8885 18.9771 20.1407 21.3843 22.7132 18.8821 20.1406 21.4953 22.9534 24.5227 26.2116 21.0151 22.5505 24.2149 26.0192 27.9750 30.0949 23.2760 25.1290 25.1290 27,1521 29.3609 31.7725 34.4054 20.6546 24.1331 28.0291 32.3926 37.2797 32.1504 39.5805 48.4966 59.1959 72.0351 at the end of each compounding period. time periods (n). It is used to calculate the future value of any series of equal payments made is table shows the future value of an ordinary annuity of $1 at various 16 17.2579 17.9324 18.6393 19.3802 20.1569 20.9710 21.8245 22.7193 23.6575 17 18.4304 19.2014 20.0121 20.8647 21.7616 22.7050 23.6975 24.7417 24.7417 25.8404 18 19.6147 20.4894 21.4123 22.3863 23.4144 24.4997 25.6454 26.8551 28.1324 19 20.8109 21.7967 22.8406 23.9460 25.1169 26.3572 27.6712 29.0636 29.0636 30.5390 20 22.0190 23.1237 24.2974 25.5447 26.8704 28.2797 29.7781 31.3714 33.0660 24.6411 26.9964 29.4812 32.1027 34 8683 25.6725 27.8881 28.2129 30.8402 30.9057 33.9990 33.7600 37.3790 36.7856 40.9955 30.3243 33.0034 35.9497 39,1899 42.7533 87.4421 33.7502 36.9737 40.5447 44.5008 48.8837 105.9306 37.4502 41.3013 45.5992 50.395955.7497 128.1167 41.4463 46.0185 51.1591 56.9395 63.4397 154.7400 45.7620 51.1601 57.2750 64.2028 72.0524 186.6880 21 23.2392 24.4705 25.7833 27.1833 28.6765 30.2695 31.9692 33.7831 35.7193 37.7861 39.9927 44.8652 50.4229 56.7645 64.0025 72.2651 81.6987 225.0256 30 34.7849 37.5387 40.5681 43.9027 47.5754 51.6227 56.0849 610071 66.4388 72.4355 79.0582 94.4608 113.2832 136.3075 164.4940 199.0209 241.3327 1181.8816 40 48.8864 54.2679 60.4020 67.4026 75,4013 84.5503 95.0255 107.0303 120.7998 136.6056 154.7620 199.6351 259,0565 337.8824 442.5926 581.8261 767,0914 7343.8578