When Patey Pontoons issued $4\%$ bonds on January $1,2024,$ with a face amount of $$500,000,$ the market yield for bonds of similar risk and maturity was $5\%.$ The bonds mature December $31,2027(4$ years$).$ Interest is paid semiannually on June $30$ and December $31.$

Required:

Determine the price of the bonds at January $1,2024.$

Prepare the journal entry to record their issuance by Patey on January $1,2024.$

Prepare an amortization schedule that determines interest at the effective rate each period.

Prepare the journal entry to record interest on June $30,2024.$

What is the amount related to the bonds that Patey will report in its balance sheet at December $31,2024?$

What is the amount related to the bonds that Patey will report in its income statement for the year ended December $31,2024?($Ignore income taxes.$)$

Prepare the appropriate journal entries at maturity on December $31,2027.$

Note: Use tables, Excel, or a financial calculator. $($EV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$FVAD of $$1$ and PVAD of $$1)$

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Req$7$

Determine the price of the bonds at January $1,2024.$

Note: Round final answers to the nearest whole dollar. Round your percentage answer to one decimal place.

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