When Patey Pontoons issued 8% bonds on January 1, 2024, with a face amount of $540,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31 Required: 1. Determine the price of the bonds at January 1, 2024, 2. Prepare the journal entry to record their issuance by Patey on January 1, 2024. 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, 2024. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2024? 6. 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.) 7. 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, EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Req 1 Req 2 Req 3 Req 4 Determine the price of the bonds at January 1, 2024. Note: Round final answers to the nearest whole dollar. Rc Table values are based on: n = 8 |= 5.5 % Cash Flow Amount Present Value Interest Principal Price of bonds Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Prepare the journal entry to record their issuance by Patey on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermedia calculations and final answers to the nearest whole dollar. View transaction list View journal entry worksheet No Date General Journal 1 January 01, 2024 Cash Discount on bonds payable Bonds payable < Req 1 Req 3 > Debit Credit 488,691 51,309 540,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Prepare an amortization schedule that determines interest at the effective rate each period. Note: Round intermediate calculations and final answers to the nearest whole dollar. Date Cash Payment Effective Interest Increase in Balance Outstanding Balance 01/01/2024 06/30/2024 $ 21,600 $ 26,878 $ 5,278 12/31/2024 21,600 27,168 5,568 5,568 06/30/2025 21,600 27,475 5,875 11,443 12/31/2025 21,600 27,798 6,198 17,641 06/30/2026 21,600 28,139 6,539 24,180 12/31/2026 21,600 28,498 6,898 31,078 06/30/2027 21,600 28,878 7,278 38,356 12/31/2027 21,600 29,277 501,644 540,000 Total $ 172,800 $ 224,111 $ 545,278 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Prepare the journal entry to record interest on June 30, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediat- calculations and final answers to the nearest whole dollar. View transaction list View journal entry worksheet No Date June 30, 2024 Interest expense General Journal Debit Credit 26,878 Discount on bonds payable Cash 5,278 21,600 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 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, statement for the year ended December 31, 2024? (Ignore income taxes.) Note: Round intermediate calculations and final answers to the nearest whole dollar. s 5. December 31, 2024 book value $ 6. Interest expense for 2024 499,537 54,046 < Req 4 Req 7 > Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Prepare the appropriate journal entries at maturity on December 31, 2027. Note: 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 View journal entry worksheet No Date General Journal Debit Credit: December 31, 2027 Interest expense Discount on bonds payable Cash 2 December 31, 2027 Bonds payable Cash Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6 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 Table values are based on: n = 8 i= 5.5 % Present Cash Flow Amount Value Interest $ 540,000 $ 351.864 x Principal 21.600 136.827 Price of bonds $ 488.691 Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Prepare an amortization schedule that determines interest at the effective rate each period. Note: Round intermediate calculations and final answers to the nearest whole dollar. Date Cash Payment Effective Interest Increase in Balance Outstanding Balance 01/01/2024 $ 51,309x 06/30/2024 $ 21,600 26,878 5,278 46,031 12/31/2024 21,600 27.168. 5,568 51,599 06/30/2025 21,600 27,475 5,875 57,474 12/31/2025 21,600 27,798 6,198 63.672 06/30/2026 21,600 28,139 6,539 70,211 12/31/2026 21.600 28.498 6,898 77.109 06/30/2027 21.600 28.878 7.278 84,387 12/31/2027 21.600 29,277 455,613 540,000 Total $ 172,800 $ 224.111 499,247 Req 2 Req 4 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Prepare the appropriate journal entries at maturity on December 31, 2027. Note: 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. No Date General Journal 1 December 31, 202 Interest expense Bonds payable Cash 2 December 31, 202 Bonds payable Cash