1 On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9% stated rate.  The bonds mature on January 1, 2024 and interest is payable annually on December 31.  The bonds are issued with an effective yield of 10%.  The company also paid bond issue costs.  Because of the bond issue costs, the adjusted effective rate is 11%.   Assuming that the bonds was retired on June 30, 2023 at total payment of P1,520,000. How much is the gain on retirement of bonds? ?

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

Q: On January 1, 2022, Kristopher Co. issued ten-year bonds with a face value of $6,000,000 and a…

A: The bonds are the financial instruments of the business. The bonds are reported as long term…

Q: Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent…

A: Bonds that have an amortized face value are ones that pay interest in addition to regular payments…

Q: Bonds with a stated interest rate of 9% and a face value totaling $626,000 were issued for $651,040…

A: BOND  Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield (market) 8% on January 1, 2020. Interest is…

A: Here the bonds having coupon rate 7.8% are issued to yield at 8%  Thus represents that bonds are…

Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: On January 1, 2021, ABC Company issued a $500,000, 8%, 10-year bond at the yield of 6%. Interest is…

A: Debt instruments that a firm issues to investors are called bonds. It is equivalent to the…

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: On June 30, 2021, Moran Corporation issued $13.0 million of its 8% bonds for $11.7 million. The…

A: Lets understand basics. When bond is issued for less than its face value then it is known to be…

Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…

A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…

Q: On January 1, 2024, a company issues $800,000 of 8% bonds, due in twelve years, with interest…

A: Lets understand the basics.Bonds can be issued at either,(1) Par value(2) Premium(3) Discount…

Q: On January 1, 2022, Pipestone Corporation issued a five-year, $40,000, 7% bond. The interest is…

A: Lets understand the basics.Bond can be issued at either par value or at discount or at premium.…

Q: On June 30, 2021, Moran Corporation issued $13.5 million of its 6% bonds for $12.1 million. The…

A:

Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Interest payment = Face value of bonds x rate of interest x time = $100 million x 6% = $6 million

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: Crane Company issued $310,000,6%,10-year bonds on January 1, 2022, for $333,936. This price resulted…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: Gain on retirement of bonds is the difference between the net carrying value of the bond on the date…

Q: A company issued a 3,000,000 6-year bonds dated January 1,2021, with a stated interest rate of 11%.…

A: Carrying value of the bonds = Present value of principal + Present value of interest payments where,…

Q: Sterling Company issued $100,000 of its 8%, five-year bonds on January 1, 2017, at 98. Interest is…

A: Compute cash interest on the bonds up to April 1, 2019 as shown below:

Q: A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate of…

A: Solution Carrying value of bond refer to the net amount between the bonds face value plus any…

Q: On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which…

A: Working note: Computation of issue price of bonds, Discount, par value of bond:

Q: Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually…

A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

Q: QO Company issued P5,000,000, 12% bonds, on July 1, 2014 at 96. The bonds will mature on July 1,…

A: Face value of bonds P50,00,000 Amount Received July 1, 2014 (P5000000 * 96%) P48,00,000 Discount…

Q: On June 1, 2019, Bramble Company sold $3,120,000 in long-term bonds for $2,736,600. The bonds will…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: On June 1, 2024, Blossom Bottle Company sold $3,720,000 in long-term bonds for $3,262,833. The bonds…

A: Bonds are a long-term liability that are issued for a fixed term. A periodic fixed interest is paid…

Q: On January 1, 2024, Baddour, Incorporated, issued 10%, 12-year bonds with a face amount of $176…

A: Financial reporting related to bonds involves disclosing essential information about a company's…

Q: March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,877.…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Amount received from the bond issuance = (Face value of bonds x issue price/100)  - bond issue cost…

Q: On June 30, 2021, Allen Corporation issued $4 million of its 8% bonds for $3.5 million. The bonds…

A: The bonds are issued at a discount when the interest offered by the market is greater than the…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: On January 1, 2023, Systems Corporation issues $60,000 of 7%, 15-year bonds, with interest payable…

A: The question is based on the concept of Financial Accounting. Bonds comes under the definition of…

Q: On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482.…

A: Bond is the amount that has been borrowed by the company on which a specified percentage of interest…

Q: On January 1, 2021, Dominguez Company issues 7-year bonds with a face value of $10,000,000 and a…

A: Face Value of bond = $10,000,000 Annual interest rate = 4% Market interest rate = 5% Cash proceeds…

Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On January 2,2018, Ohio Company issued P 10 million of 12% bonds for P 12,734,120 due December…

A: A bond is issued at a premium means that the issue price of the bond is more than the face value of…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.