When Patey Pontoons Issued 6% bonds on January 1, 2024, with a face amount of $600,000, the market yleld for bonds of similar risk and maturity was 7%. 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. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 and 6 Reg 7

When Patey Pontoons Issued 6% bonds on January 1, 2024, with a face amount of $600,000, the market yleld for bonds of similar risk and maturity was 7%. 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. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 and 6 Reg 7

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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