my work 6 when Patey Pontoons issued 8% bonds on January 1, 2018, with a face am

Question

my work 6 when Patey Pontoons issued 8% bonds on January 1, 2018, with a face amount of S620.000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31, (Ey and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required 1. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2018. 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, 2018. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2018? (Ignore income taxes.) ook ences 7. Prepare the appropriate journal entries at maturity on December 31, 2021 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 and 6Req 7 Determine the price of the bonds at January 1, 2018. (Round final answers to the nearest whole dollar.) Amount Present Value Principal Price of bonds

Explanation / Answer

Table values are based on: n= 8 i= 5.5% Cash Flow Amount Present Value Interest 24800 157097 Principal 620000 403991 Price of bonds 561088

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