At April 1, 2021, Candy Company sold the Sugar bonds for $3,090,000. Assuming Candy Company has a portfolio of Available-for-Sale Debt Securities, what the amount should Candy Company should report as a gain or loss on the Sugar bonds?

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: Pharoah Company purchased $1700000 of 11% bonds of Scott Company on January 1, 2021, paying…

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

Q: The Long-Term Debt section of Rodman Company’s balance sheet as of December 31, 2020, included 8%…

A: Long term debt is the item shown on the liabilities side of the Balance Sheet under the heading…

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On September 1, 2021, Howell Company purchased 600 of the P1,000 face value, 9% bonds of Ramsey,…

A: The bonds purchased for non trading are recorded as investment in the balance sheet. The difference…

Q: PT ABC purchased Rp300.000 of 8%, 5-year bonds from PT DEF on January 1, 2018, with interest payable…

A: Half Year Opening Balance Interest Expense @ 3.5% Coupon Payment Amortized Premium Ending Balance…

Q: Record the collection of the interest and the sale of the bonds. (List all debit entries before…

A: Bond is a type of loan issued by corporation to finance its business operation.It is issued at…

Q: On January 2, 2020, Progresso Inc. purchased $150,000 of Cambells Corporation bonds at a discount of…

A: When the stated interest rate of the bond is less than the market interest rate then the bond is…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Bonds Payable = $10,000 * 3 bonds = $30,000 The calculation for Issue Price of bonds: The present…

Q: Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with…

A: Other comprehensive income=Fair value of bonds-Bond carrying value

Q: On January 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in…

A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…

Q: Teal Mountain Incorporated issued $0.62 million of 6.5%, 10-year bonds on July 1, 2019, at face…

A: Under ASPE, the bond payable is recorded at the face value and the interest is computed by applying…

Q: od to amortize discount or premium. On Ja Is for $258,816 after receiving interest to m 1/27 - /27 -…

A: Calculate the semiannual interest income using the effective-interest method:The effective interest…

Q: Gonzales Company acquired a P5,000,000, 5-year bond on January 1, 2020, for P4,620,000. The stated…

A: It is the loss arises, when the recoverable or realizable value from the asset is lower than the…

Q: Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with…

A: Given, Sales price of bond is $3,490,000 Carrying value of bond is $3,497,440   The computation is…

Q: An investor company purchased $716,000 of 4% bonds from the investee company on January 1, 2020,…

A: When the corporation buys securities with the intention to resell them or not hold them till…

Q: On its December 31, 2020 balance sheet, Coronado Industries reported bonds payable of $6100000. The…

A: Meaning of call Premium: Call premium is the dollar amount over the par value of callable debt…

Q: An investor company purchased $790,000 of 5% bonds from the investee company on January 1, 2020,…

A: An available for sale securities is a security that do not fall under either the trading securities…

Q: On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200…

A: S.No. Date Particulars Debit Credit 1 March 31, 2018 Cash  $  1,758,200.00       Discount on…

Q: 00 plus accrued interest. The bonds pay interest annually on January 1.  on December 31, 2021, the…

A: When investments are accounted through fair value through profit or loss, the difference that arises…

Q: On January 1, 2015, Marigold Corp. issued $17100000 of 10% ten-year bonds at 102. The bonds are…

A: Requirement of the question : calculation of gain/loss on reacquisition.Meaning of bonds : Bonds are…

Q: Jim Company issued P 4,000,000 of 8 ½%, 5- year bonds on March 1,2018. Interest payment dates are…

A: Since we answer only up to three sub-parts, we shall answer the first three. Please resubmit a new…

Q: On July 1, 2020, West Company purchased for cash, twelve $10,000 bonds of North Corporation at a…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 1, 2020, Sage Company purchased $270,000, 6% bonds of Aguirre Co. for $248,099. The bonds…

A: The procedure of recording business transactions for the first time in the books of accounts is…

Q: On January 1, 2020, Nash Company purchased $330,000, 8% bonds of Aguirre Co. for $304,517. The bonds…

A: Bond's purchased as available-for-sale are to be recorded at their fair value in books.

Q: MCK Inc. purchased on January 1, 2021, $600,000, 6% bonds of Aguirre Co. for $536,621. The bonds…

A: When the issue price of a bond is lower than the face value then, it is called to be issued at…

Q: On January 1, 2025, Copa Company purchased $300,000, 6% bonds of Cabana Co. for $313,128. The bonds…

A: Bonds are issued by organizations to raise long-term funds. Bonds can be issued at par, at a…

Q: 7)  ABC Company purchased $1,200,000 of 7%, 5-year bonds from XYZ, Inc. on January 1, 2021, with…

A: Bond is that debt instrument which is used by the organisation to finance its long term fund needs,…

Q: On 1/1/2019, Allie Company issued bonds payable of $400,000 at 8%. It was sold at $364,000 with…

A: Bond amortization method is an accounting system to record the bond liabilities. It systematically…

Q: An investor company purchased $491,000 of 8% bonds from the investee company on January 1, 2020,…

A: Particulars Amount Cost of Bond Investment on Jan.1,2020 $755470 Add: Amortization of Discount…

Q: Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: When the sale price of bonds is greater than the book value of the bonds, then it would result in…

Q: 1. nformation on an entitys defined benefit obligation is as follows Present value of defined…

A: Interest cost = beginning defined benefit obligation x discount rate = 130000*12% = 15600

Q: Black Company purchased P400,000 of 10% bonds of White Co. on January 1, 2021, paying P376,100. The…

A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value at the…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: erest Receivable Bond Carrying Or Interest Discount Amount of Cash Received Revenue Amortization…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying…

A: Lets understand the basics.Bond :— It is one of the source of capital that pays fixed periodic…

Q: An investor company purchased $427,000 of 8% bonds from the investee company on January 1, 2020,…

A: Bonds:- Bonds are defined as the fixed income instrument which shows the amount of loan paid by the…

Q: Instructions: 1. Prepare the journal entry at the date of the bond purchase. 2. Prepare the first 3…

A: Bond :—  A bond is loan from an investor to a borrower such as a company or government.  It's…

Q: MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2020 for $106,000.…

A: When issue price is greater than the face value then it means the bonds are issued at a premium. The…

Q: Blossom Company purchased $1180000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

Q: esto Corporation has authorized to issue$4,500,000 of its 9%, 5-year bonds On January 1, 2019, when…

A: 1) Journal Entry to record issue of Bonds. Date Particulars Debit Credit Jan 1 - 2019 Cash…

Q: PUP CAF Corporation acquired a 4-year, P3,000,000 par value bonds when the prevailing rate of…

A: Unrealized gain or loss on investment: Investment gains that are not yet realized are gains that…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.