Rose Company issued 4% bonds, dated January 1, with a face amount of $900,000 on January 1, 2023. The bonds sold for $723,599 and mature in 2037 (15 years). For bonds of similar risk and maturity the market yield was 6%. Interest is paid semiannually on June 30 and December 31. Assume Rose 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:

1. What is the amount related to the bonds that Rose will report in its balance sheet at December 31, 20237
2. What is the amount related to the bonds that Rose will report in its income statement for the year ended December 31, 20237 (Ignore income taxes.)
3. What is the amount related to the bonds that Rose will report in its statement of cash flows for the year ended December 31, 20237 Be sure to list the category of activity in which the cash flow is in.

activities

activities

4. Assume Sunflower Company purchased this entire bond issue sold by Rose, i.e., 4% of $900,000 bonds, at $723,599 on January 1,2023. Market yield was 6% and interest is paid semiannually on June 30 and December 31. Sunflower is holding the bond investment as trading securities. The fair value of the bonds on December 31, 2022 is $735,000.

1. At what amount will Sunflower report this investment in the December 31, 2023 balance sheet?
2. What is the amount related to the bond investment that Sunflower will report in its income statement for the year ended December 31, 2023? (Ignore income taxes.)
3. What is the amount related to the bond investment that Sunflower will report in its statement of cash flows for the year ended December 31, 20237 Be sure to list the category of activity in which the cash flow is in.

activities

activities