On January 1, 2022, Beaming Books Bureau sold $1,250,000 of 7% bonds to OptimisticOutcomes Inc. The...

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On January 1, 2022, Beaming Books Bureau sold $1,250,000 of 7% bonds to OptimisticOutcomes Inc. The bonds mature on December 31, 2025 (4 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Discont Optimistic Outcomes Enterprise purchased the bonds as an investment and plans to hold the bonds for approximately 2 years. The fair value of the bonds at 12/31/22 was $1,305,000. OptimisticOutcomes's fiscal year end is December 31 and 2022 was its first year of business. Required: 1. Prepare the fair value adjusting entry for Optimistic Outcomes Enterprise as of 12/31/22. Show your work. (1.25mon 305,000 2. Show or describe exactly and specifically what will appear on the Balance Sheet of Optimistic Outcomes Enterprise as of 12/31/22, related to these bonds. 3. Show or describe exactly and specifically what will appear on the Income Statement of Optimistic Outcomes Enterprise for the year ending 12/31/22. On January 1, 2022, Beaming Books Bureau sold $1,250,000 of 7% bonds to OptimisticOutcomes Inc. The bonds mature on December 31, 2025 (4 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Discont Optimistic Outcomes Enterprise purchased the bonds as an investment and plans to hold the bonds for approximately 2 years. The fair value of the bonds at 12/31/22 was $1,305,000. OptimisticOutcomes's fiscal year end is December 31 and 2022 was its first year of business. Required: 1. Prepare the fair value adjusting entry for Optimistic Outcomes Enterprise as of 12/31/22. Show your work. (1.25mon 305,000 2. Show or describe exactly and specifically what will appear on the Balance Sheet of Optimistic Outcomes Enterprise as of 12/31/22, related to these bonds. 3. Show or describe exactly and specifically what will appear on the Income Statement of Optimistic Outcomes Enterprise for the year ending 12/31/22.

Answer rating: 100% (QA)

ANSWER Fair Value Adjusting Entry for OptimisticOutcomes Enterprise as of 123122 The fair value adju... View the full answer