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Omar Company issued 7 % bonds, dated January 1 , with a face amount of $ 1 , 0 0 , 0 0 0 on
Omar Company issued bonds, dated January with a face amount of $ on January The bonds sold for $ and mature in years For bonds of similar risk and maturity the market yield was Interest is paid semiannually on June and December Assume Omar determines interest at the effective rate.
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
Answer the following questions:
What is the amount related to the bonds that Omar will report in its balance sheet at December
What is the amount related to the bonds that Omar will report in its income statement for the year ended December Ignore income taxes.
What is the amount related to the bonds that Omar will report in its statement of cash flows for the year ended December Be sure to list the category, activity in which the cash flow is in
activities activities
Assume Sunset Company purchased this entire bond issue sold by Omar, ie of $ bonds, at $ on January Market yield was and interest is paid semiannually on June and December Sunset is holding the bond investment as trading securities The fair value of the bonds on December is $
At what amount will Sunset report this investment in the December balance sheet
What is the amount related to the bond investment that Sunset will report in its income statement for the year ended December Ignore income taxes.
What is the amount related to the bond investment that Sunset will report in its statement of cash flows for the year ended December Be sure to list the category of activity in which the cash Flow is in activities activities
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