, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker's commission of P20,000). Interest is payable an

Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: PV annuity factor at 5% for 40 periods is 17.15909.PV factor at 5% for 40 periods is 0.14205.

Q: On June 1, 2023, JetCom Inventors Inc. Issued December 1, 2023. Required: a Calculate the issue…

A: The Effective Interest Method is a common approach used to amortize the discount or premium on a…

Q: On January 1, 2020, ABC Company issued 5,000 of its 12%, P1,000 face value bonds for P5,350,000…

A: Accrued Interest on Bond: Accrued interest is the amount of interest earned on a debt(Bond) which is…

Q: On January 1, 2019, CupCompany purchased NoodlesCorporation, 9% bonds with a face value of…

A: Unrealized gain (loss) reported in other comprehensive income for the year 2019: Unrealized gain…

Q: On January 1, 2023, Bridgeport Corporation purchased a newly issued $1,250,000 bond. The bond…

A: The price of a bond is equal to the sum of the present value of coupon payments and the present…

Q: On January 2, 2020, Carla Corporation issued $1,200,000 of 10% bonds at 96 due December 31, 2029.…

A: The loss on redemption of the bond payable is recorded when the amount paid for such redemption is…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: Formula: Semiannual interest payment = Face value of bonds x rate of interest x no. of months / 12…

Q: The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The…

A: The carrying value of a bond is computed by adding an unamortized premium or subtracting the…

Q: Auerbach Inc. Issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Bonds are a form of debt or liability for the business, on which regular interest payments also…

Q: Gordon Corporation issued $700,000 par value 2% 5 year bonds on Jan 1 2019. The bonds mature on…

A: Face value $700,000   Discount rate 4%   Time to Maturity 5 years   Number of periods 10…

Q: A company issues $16700000, 9.8%, 20-year bonds to yield 10% on January 1, 2022. Interest is paid on…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: 21.Refer to the information in Question No. 20. How much is the interest income for the year 2022?…

A: This post has several questions. Q21 has been answered below:

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: On January 1, 2020, Apple Co. purchased held-for-collection and sales bonds par value $2,000,000, 9%…

A: Bond valuationwhen the market interest rate is higher than the coupon interest rate, then the bond…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Solution: Cost of bond = P1,051,510 Market interest rate = 9% Stated rate = 10% Face value =…

Q: On June 30, 2023, Blossom Limited issued $2 million of 20-year, 10% bonds for $2,184, 018, which…

A: The bonds can be issued to raise money. The bonds are the debt instruments that are generally issued…

Q: (a) Pharoah Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2020. The bonds were…

A: An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a…

Q: Reporting Bonds Using the Fair Value Option Mitchell Inc. issued 24, 6%, $1,000 bonds on January 1,…

A: Introduction:A journal entry is a record of a business arrangement in the accounting system of a…

Q: Kendrick Corporation issued $660,000 of 7%, 10-year bonds payable on March 31, 2019. The market…

A: Issue price of the bond:Par value of the bond = $660,000Market interest rate   = 9% per annum (or)…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Fair Price of the bonds on December 31, 2020 = Present value of principal + Present value of…

Q: On January 1, 2024, Solo Incorporated issued 1,600 of its 8%, $1,000 bonds at 98.5. Interest is…

A: When bonds are issued at a discount it means they are sold at a price below their face value. The…

Q: Igloo Co sells $397000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June…

A:

Q: On January 1, 2019, Bee Corp. issued 8-year bonds with a principal value of $3,400,000 and a stated…

A: When the stated rate of interest of 8% is less than the market rate of interest of 10%, the bonds…

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 2030. The…

A: Solution: Bond Amortization Schedule (Partial) Period Cash Paid Interest Expense Discoount…

Q: Date 1/1/2024 /30/2024 $11,500 11,500 11,500 11,500 11,500 11,500 31/2024 30/2025 31/2025 30/2026…

A: Bonds are source of finance for companies and bonds pay an annual interest rate and par value is…

Q: Prepare the journal entries to record the recognition of fair value for 2023 and assuming the…

A: The bonds are issued or purchased either at discount or at a premium. The bond amortization table is…

Q: 1. to 3. Prepare the journal entries to record interest on June 30, 2024 (the first interest…

A: Bonds are debt securities that represent a form of borrowing for both governments and corporations.…

Q: Kk.371. Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,250,000 in 7%…

A: Bonds are financial instruments that reflect loans made by investors to borrowers, who are often…

Q: (The following information applies to the questions displayed below.] On January 1, 2019, Drennen…

A: Assets =Liabilities +Stockholders' EquityNet Income=Revenues -Expenses

Q: Nash Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Bonds represent debts issued by the firm to meet the capital requirements. They act as a promise by…

Q: 1. What is the carrying amount of the bonds payable on December 31,2020? A. 5,450,000 B. 4,830,000…

A: Bonds payable is one of the form of liability being incurred in business, on which regular interest…

Q: On June 30, 2024, Gunderson Electronics issued 8% stated rate bonds with a face amount of $300…

A: A bond is a fixed income security which offers the investor a fixed set of periodic coupon payments…

Q: 1. On June 1, 2019, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,300. The…

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

Q: please step by step answer.

A: Step 1: To find the carrying value of the bonds on December 32, 2026, we need to calculate the…

Q: On January 1, 2020, Aspin Company purchased $1,200,000, 14% bonds of Bulldog Company for $1,381,934,…

A: If the financial asset is measured at amortized cost, on the subsequent reporting date, the…

Q: On January 1, 2021, Jackie Company issued P8,000,000 8% eight-year bonds. Similar bonds had an…

A: The carrying value of bonds refers to the amount shown as liability by issuer in accounting records…

Q: Lord Corporation acquired bonds with a face value of P3,000,000 for P2,800,000 on January 1, 2020.…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Interest paid=Value of bonds×10%=P 1,000,000×10%=P 100,000

Q: On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest.…

A: The bonds are issued at premium or discount depending on the market rate of interest of bonds.

Q: Bonds with a stated interest rate of 9% and a face value totaling $610,000 were issued for $634.400…

A: Carrying value of bond at end of year 1 = issue price + effective interest expense  - stated…

Q: A company issues $15500000, 9.8%, 20-year bonds to yield 10% on January 1, 2022. Interest is paid on…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on…

A:

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.