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When Patey Pontoons issued 6 % bonds on for bonds of similar risk and maturity was 7%, The bonds mature December 31, 2019 (4 years).
When Patey Pontoons issued 6 % bonds on for bonds of similar risk and maturity was 7%, The bonds mature December 31, 2019 (4 years). Interest is paid semiannually January 1, 2016, with a face amount of $600,000, the market yield on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2016. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2016. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest 5. What is the amount(s) related to the bonds that Patey will report in its balance sheet at December 31, 2016? 6. What is the amount(s) related to the bonds that Patey will report in its income statement for the year ended December 31, 2016? (Ignore income taxes.) 7. Prepare the appropriate journal entries at marurity on June 30, 2016. on December 31, 2019. National Orthopedics Co. issued 9% bonds, daier ary 1, with a face amount of $500,000 on January 1, 2016. The bonds mature on December 31, 2019 (4 yrs bnds of similar risk and maturity the market yield 10%. Interest is paid semiannually on Jene 30 ard ecenbe 31 was
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