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The market yield for bonds of similar risk and maturity was 8 % . Interest is paid semiannually on July 3 1 and January 3
The market yield for bonds of similar risk and maturity was
Interest is paid semiannually on July and January
Barnwell Industries acquired $ of the bonds as a longterm investment.
The fiscal years of both firms end December
equired:
Determine the price, of the bonds issued on February
a Prepare amortization schedules that indicate Sanyal's effective interest expense for each interest period during the term maturity.
b Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the tern maturity.
Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell's investment on February
Prepare the journal entries by both firms to record all events related to the bonds through January
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Complete this question by entering your answers in the tabs below.
Req Sanyal Req Barnwell
Determine the price of the bonds issued on February
Note: Do not round intermediate calculations. Enter your answer in whole dollars.
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