Alpha Company issued 10% bonds, dated January 1, with a face amount of S800,000 on January 1, 2021. The bonds sold for $741,862 and mature in 2035 (15 years). For bonds of similar risk and maturity the

market yield was 11o. Interest is paid semiannually on June 30 and December 31. Assume Alpha determines interest at the effective rate. Fiscal year ends on December 31.

Answer the following questions

(Do not add dollar sign; do not add comma by yourself to your amount; round the answer to the whole number; use minus sign if the amount is negative)

1. What is the amount related to the bonds that Alpha will report in its balance sheet at December 31, 2021? ___________

2.What is the amount related to the bonds that Alpha will report in its income statement for the year ended December 31, 2021? (lgnore income taxes) _______________

3. What is the amount related to the bonds that Alpha will report in its statement of cash flows for the year ended December 31, 2021? Indicate the category in which to classify cash flows.

__________ actvities ________________ activities

4. Assume the entire bond issue was purchased by Benjamin Company on January 1, 2021. Benjamin is holdng the bonds in its trading portfolio. The fair value of the bonds on December 31, 2021 is $745,611.

a. At what amount will Benjamin report this investment in the December 31, 2021 balance sheet? _____________

b. What is the amount related to the bond investment that Benjamin will report in its income statement for the year ended December 31, 2021? (Ignore income taxes) _____________

c. What is the amount related to the bond investment that Benjamin will report in its statement of cash flows for the vear ended December 31, 2021 Indcate the category in which to classfy cash flows

__________ activities ____________, ____________ activities ___________

Alpha Company wond 10. bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds told for 5741,862 and nature in 2035 415 years) For hands of simular nisk and matury the muket yield was 11% Interest is paid semially on June 10 and December 31. Assume Alpha determines interest at the effective rate Fecal year ends on December 31 Answer the following questions (Do not odd dollar signe do not add commo by yourself to your amount round the answer to the whole number; use minus sign of the amount is negative 1. When to the books that Alpho will report in in balance sheet December 31, 2001 2 What is the amoun related to the bonds that Alpho will report an income statement for the sewended December 31, 2021 (love income taxes 3 What is the sout velated to the bonds that Alpho wat sport in its statement of cash flows for the year ended December 31, 201* indicate the carport en tacho cap cash flow Anunt the mat bond we wis padhaud y Benjamin Comans celay 1.321 Botting the book in strading portfolio The towalue of the bonde December 11, 2021 5745.611 who wa Benjamin port this is our December 1, 2011 balance sheet We de bon weer n Beyin all post in its income statement few ended December 1, were We went statement of cash flows for the