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please show work Miller Company issued 8% bonds, dated January 1, with a face amount of $1,000,000 on January 1, 2021. The bonds sold for
please show work
Miller Company issued 8% bonds, dated January 1, with a face amount of $1,000,000 on January 1, 2021. The bonds sold for $846,278 and mature in 2035 (15 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Assume Miller 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 Miller will report in its balance sheet at December 31, 2021? 2. What is the amount related to the bonds that Miller will report in its income statement for the year ended December 31, 2021? (Ignore income taxes.) 3. What is the amount related to the bonds that Miller 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 4. Assume the entire bond issue was purchased by Gama Company Gama is holding the bonds in its trading portfolio. The fair value of the bonds on December 31, 2021 is $859,077 a. At what amount will Gama report this investment in the December 31, 2021 balance sheet? b. What is the amount related to the bond investment that Gama 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 Gama 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 add dollar sign: do not odd comma by yourself to your amount round the answer to the whole number use minus sign if the amount is negative)
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