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NEED ASAP 10 MINS PLEASE SHOW CALCULATIONS!!!!! Crystal Company issued 8% bonds, dated January 1, with a face amount of $600,000 on January 1, 2021.
NEED ASAP 10 MINS PLEASE SHOW CALCULATIONS!!!!!
Crystal Company issued 8% bonds, dated January 1, with a face amount of $600,000 on January 1, 2021. The bonds sold for $551,133 and mature in 2035 (15 years). For bonds of similar risk and maturity the market yield was 9%. Interest is paid semiannually on June 30 and December 31. Assume Crystal determines interest at the effective rate. Fiscal year ends on December 31. Answer the following questions: 1. What is the amount related to the bonds that Crystal will report in its balance sheet at December 31, 2021? 2. What is the amount related to the bonds that Crystal will report in its income statement for the year ended December 31, 2021? (Ignore income taxes.) activities 3. What is the amount related to the bonds that Crystal will report in its statement of cash flows for the year ended December 31, 2021? Indicate the category in which to classify cash flows activities 4. Assume the entire bond issue was purchased by Omega Company. Omega is holding the bonds in its trading portfolio. The fair value of the bonds on December 31, 2021 is $561,233 2. At what amount will Omega report this investment in the December 31, 2021 balance sheet? b. What is the amount related to the bond investment that Omega 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 Omega will report in its statement of cash flows for the year ended December 31, 2021? Indicate the category in which to classify cash flows activities activities (Do not odd dollar sign; do not add commo by yourself to your amount: round the answer to the whole number use minus sign if the amount is negative)Step by Step Solution
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