reаd the stаtement оr questiоn оn the Left, аnd select the correct answer from the dropdown menu on the Right.
Essаy Questiоn #1 Rаptоr Cоmpаny issued $3,000,000 of 9%, 10-year bonds on January 1, 2020. Interest is payable semiannually on July 1 and January 1. The first interest payment occurs on July 1, 2020. The bonds were sold with an effective yield of 8%. Raptor Company uses the effective-interest method of amortization for bond premium or discount. Raptor's year-end for financial reporting is December 31, 2020. Instructions A. Using functions within Excel or the textbook factor tables, document and determine the pricing of the bonds as of January 1, 2020. B. Prepare all appropriate journal entries related to the bonds for the year ended December 31, 2020 including adjusting entries. C. Raptor elects to use the fair value method of valuing these bonds. The fair value of the bonds at 12/31/20 is $3.2 million. Prepare the appropriate adjusting journal entry to reflect the fair value method at 12/31/20. The change in fair value is the result of changes in credit risk only. D. Provide the answers to the following questions. 1. Describe which financial statement would report/disclose interest expense including the location on the financial statement and how much interest expense. 2. What is the total value of the debt on the balance sheet as of 12/31/20? BE CAREFUL. The following Excel file may be used to develop answers to the essay questions (optional but highly encouraged). Remember to copy and paste answers to the Canvas essay questions and to upload your completed Excel file in the question immediately following the last essay question (#4). Exam 2 Chapter 14 & 21 Essay Questions Student Version Summer 2024.xlsx Factor Tables PV $1 Table 2-2.pdf PVA Ordinary Table 4-2.pdf PVA Annuity Due Table 6-2.pdf