Case Facts:Monterey Company owns a majority voting interest in Del Rey, Inc. On January 1, 2019, Monterey issued $1,000,000 of 6 percent 10-year bonds at $929,764.18 to yield 7 percent. On January 1, 2021, Del Rey purchased all of these bonds in the open market at a price of $885,067.22 with an effective yield of 8 percent.Requirements:Using the template on the “Template” tab in this provided Excel file, complete the following:In the space provided, prepare amortization schedules for the Monterey Company bonds payable and the Investment in Monterey Bonds for Del Rey, Inc.In the space provided, prepare consolidation worksheet entry “B” required at December 31, 2021 to reflect the effective retirement of the Monterey bonds. ABCDEExcel Case-Intra-entity BondsGuiding notes - the bond issued is a liability with interest expense.Bonds issued January 1, 2019 with a stated rate of 6% sold to yield 7%UnamortizeDateFace Value d Discount Book Value1/1/201912/31/201912/31/202012/31/202112/31/202212/31/202312/31/202412/31/2025EffectiveInterestFGHJKLCashInterestDiscountAmortizatioΣYou will prepare two amortization tables, one for eachbond in the problem. See Exhibit 6.5 on page 277 for acompleted amortization schedule to guide you.12/31/202612/31/202712/31/2028Maturity dateWhile the bond purchased & retired, is an investment with interest income.Bonds retired by affiliate on January 1, 2021 with a stated rate of 6% and an effective rate of 8%UnamortizeFace Value d Discount Book ValueEffectiveInterestCashInterestDiscountAmortizatio0Date1/1/2021212/31/20218 12/31/20221 12/31/20235 12/31/20246.12/31/202512/31/2026B 12/31/2027212/31/2028Maturity date8 Consolidated Worksheet Entry 12/31/2193.You will also prepare Consolidation Worksheet Entry "B"(see page 279) relating to the bonds.Notes:(1) All of the values you use in the journal entry will bederived from the two tables above.(2) You need to use account balances after the 2021amortization adjustment.(3) "Gain / Loss on Retirement of Bonds" is a "plugamount", that is the amount required to balance thejournal entry.

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Case Facts:Monterey Company owns a majority voting interest in Del Rey, Inc. On January 1, 2019, Monterey issued $1,000,000 of 6 percent 10-year bonds at $929,764.18 to yield 7 percent. On January 1, 2021, Del Rey purchased all of these bonds in the open market at a price of $885,067.22 with an effective yield of 8 percent.Requirements:Using the template on the “Template” tab in this provided Excel file, complete the following:In the space provided, prepare amortization schedules for the Monterey Company bonds payable and the Investment in Monterey Bonds for Del Rey, Inc.In the space provided, prepare consolidation worksheet entry “B” required at December 31, 2021 to reflect the effective retirement of the Monterey bonds. ABCDEExcel Case-Intra-entity BondsGuiding notes - the bond issued is a liability with interest expense.Bonds issued January 1, 2019 with a stated rate of 6% sold to yield 7%UnamortizeDateFace Value d Discount Book Value1/1/201912/31/201912/31/202012/31/202112/31/202212/31/202312/31/202412/31/2025EffectiveInterestFGHJKLCashInterestDiscountAmortizatioΣYou will prepare two amortization tables, one for eachbond in the problem. See Exhibit 6.5 on page 277 for acompleted amortization schedule to guide you.12/31/202612/31/202712/31/2028Maturity dateWhile the bond purchased & retired, is an investment with interest income.Bonds retired by affiliate on January 1, 2021 with a stated rate of 6% and an effective rate of 8%UnamortizeFace Value d Discount Book ValueEffectiveInterestCashInterestDiscountAmortizatio0Date1/1/2021212/31/20218 12/31/20221 12/31/20235 12/31/20246.12/31/202512/31/2026B 12/31/2027212/31/2028Maturity date8 Consolidated Worksheet Entry 12/31/2193.You will also prepare Consolidation Worksheet Entry &#34;B&#34;(see page 279) relating to the bonds.Notes:(1) All of the values you use in the journal entry will bederived from the two tables above.(2) You need to use account balances after the 2021amortization adjustment.(3) &#34;Gain / Loss on Retirement of Bonds&#34; is a &#34;plugamount&#34;, that is the amount required to balance thejournal entry.

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