Rainbow Company wed 6% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds sold for 5661,665 and mature in 2035 (15 years) For bonds of similar risk and maturity the market yield was 8% Interest is paid semially on June 30 and December 31. Assume Rainbow determines interest at the effective rate Fiscal year ends on December 31 Answer the following questions 1. What is the mountated to the bonds that Rainbow will reports balance sheet December 31, 2017 2 What is the most related to the bonds that Rainbow tell report in its income statement for the year ended December 31, 2021 e income tas) 2. What is the mean related to the bonds that Rainbow will report in its statement of cash flows for the year ended December 31, 2021 indicate the category in which to classify cash flows 1. Amme the met bond issue was purchased by Moore Company Moe a holding the bonde in its trading portfolio The tur value of the bond on December 31, 2021 5675,077 2. At what will report this vesent the December 31, 2021 balance sheet What is the mounted to the bond investment that core will seperti mincome statement for the year ended December 31, 2001 comes What is the one to the boat Moore worth statement of cash flows for the Dember 31, 2017 Indice they in which to class Rainbow Company issued 6% bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds sold for $661.665 and mature in 2035 (15 years). For bonds of similar risk and maturity the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Assume Rainbow 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 Rainbow will report in its balance sheet at December 31, 20217 2. What is the amount related to the bonds that Rainbow will report in its income statement for the year ended December 31, 2021? (more income taxes) 3. What is the amount related to the bonds that Rainbow 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 Moore Company Moore is holding the bonds in its trading portfolio The fair value of the bonds on December 31, 2021 i 5675,077 At what amount will Moore report this vestment in the December 31, 2021 balance sheet . What is the amount related to the bond investment that Moore will report in its income statement for the year ended December 31, 20217 lgnore income taxes ) c. Win is the amount related to the bond investment that Moore will report in its statement of cash flows for the year ended December 31, 2017 Indicate the category in which to classify Do not did dolor sipe do not add come by yourself to your amount round the one to the whole numbers use the amount is not
