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Business, 09.09.2021 21:50 isabellajmoody

When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $880,000, the market yield for bonds of similar risk and maturity was 11%. Thus, the bonds issued for $852,129. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry to record bond issuance by Patey on January 1, 2021. 2. Prepare an amortization schedule that determines interest at the effective rate each period. 3. Prepare the journal entry to record interest on June 30, 2021. 4. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021

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