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 seminally on June 30 and December 31. Assume Rainbow determines interest at the effective rate Fiscal year ends on December 31  

1. What is the amount 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 tax) 

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 

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

 a). At what amount will Moore report this vestment in the December 31, 2021 balance sheet . 

b). What is the amount related to the bond investment that Moore will report in its income statement for the year ended December 31, 20217 ignore 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 notrn  

Answer rating: 100% (QA)

Answer 1 given data issued face amount bonds sold marke rate b... View the full answer