When Patey Pontoons issued 6% bonds on January 1, 2021, with a face amount of $600,000, the market yield for bonds of similar risk and maturity was 10%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (EY of $1. PV of S1 EVA of $1. PVA of $1. EVAD 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req4 Req 5 and 6 Reg 2 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar.) Table values are based on: na % Amount Present Value Cash Flow Interest Principal Price of bonds Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 and 6 Req 7 Prepare the journal entry to record their issuance by Patey on January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field, Round intermediate calculations and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet > Record the issuance of the bonds on January 1, 2021. Note: Enter debts before credits Date General Journal Debit Credit January 01, 2021 Record entry Clear entry View general Journal Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 and 6 Req 7 Prepare the journal entry to record interest on June 30, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the interest expense on June 30, 2021. Note: Enter debits before credits Date General Journal Debit Credit June 30, 2021 Record entry Clear entry View general Journal Help 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 Reg 2 Reg 3 Req 4 Reg 5 and 6 Reg What is the amount(s) related to the bonds that Patey will report in its balance sheet at December 31, 2021 and Income statement for the year ended December 31, 2021? (Ignore income taxes.) (Round Intermediate calculations and final answers to the nearest whole dollar.) 5. December 31, 2021 book value 6. Interest expense for 2021 Reg 1 Reg 2 Req3 Reg 4 Reg 5 and 6 Req7 Prepare the appropriate journal entries at maturity on December 31, 2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar) View transaction list Journal entry worksheet 2 1 > 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 Reg 1 Reg 2 Reg 3 Reg 4 Req 5 and 6 Reg 7 Prepare the appropriate journal entries at maturity on December 31, 2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar) View transaction list Journal entry worksheet 1 2 Record the retirement of the bond at maturity on December 31, 2024. Note: Enter debits before credits General Journal Debit Date December 31 2024 Credit Record entry Clear entry View general Journal
