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When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $640,000, the market yield for bonds of similar risk and

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When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $640,000, 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 S1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (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 Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req3 Reg 4 Req 5 and 6 Req 7 ---- Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 Req 5 and 6 Req 7 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest Table values are based on: n= i = % Cash Flow Amount Present Value Interest Principal Price of bonds Journal entry worksheet Journal entry worksheet 1 Record the interest expense on June 30, 2021. Note: Enter debits before credits General Journal Debit Credit Date June 30, 2021 Record entry Clear entry View general journal Req 1 Req 2 Req3 Req 4 Req 5 and 6 Req 7 What is the amount(s) related to the bonds that Patey will report in its balance sheet at December 31, 2021 and statement for the year ended December 31, 2021? (Ignore income taxes.) (Round Intermediate calculations and to the nearest whole dollar.) 5. December 31, 2021 book value 6. Interest expense for 2021 VIGILLOT Journal entry worksheet Record the interest expense on December 31, 2024. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2024 Record entry Clear entry View general journal

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