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Barnwell''s effective interest revenue

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Reference no: EM1376720

On 1st February, 2013, Cromley Motor Products issued 6% bonds, dated 1st February, with a face amount of $75 million. The bonds mature on 31st January, 2017 (4 years). The market yield for bonds of similar risk and maturity was 8 percent. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $75,000 of bonds as a long-term investment. The fiscal years of both firms end December 31. 
Arrange amortization schedules that indicate Cromley's effective interest expense for each interest period during term to maturity.
Organize amortization schedules that designate Barnwell's effective interest revenue for every interest period during the term to maturity.

Reference no: EM1376720

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