Bocelli Co. purchased $162,000 of 7%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $31,200 of the Sanz County bonds at 96 plus $182 accrued interest less a $105 brokerage commission. Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles): a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year. b. Semiannual interest on October 1. c. Sale of the bonds on October 31. d. Adjusting entry for accrued interest of $2,289 on December 31, Year 1.

Q: Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2024. • Debt…

A: The procedure by which a bond issuer reimburses bondholders and essentially removes the bond from…

Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…

A:

Q: Entries for Investment in Bonds, Interest, and Sale of Bonds Bocelli Co. purchased $84,000 of 7%,…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: upola Fan Corporation issued 12%, $580,000, 10-year bonds for $552,000 on June 30, 2024. Debt issue…

A: Journal entries refer to the recording of financial transactions in the debit and credit format that…

Q: Lakeshore Gelato issued $1,200,000 of 7% bonds at 99 on January 2, Year 1. Interest is paid…

A: Answer:- Bond is an instrument that carries fixed coupon payment with it. These are issued to those…

Q: Moab Corporation sells $600,000 of 7%, 20-year bonds for 98 on January 1. Interest is paid on…

A: Issue value = Face value of bonds x Issue price /100 = $600000 x 98/100 = $588,000

Q: Gillooly Co. purchased $81,000 of 5%, 15-year Lumpkin County bonds on May 11, Year 1, directly from…

A: Bonds are debt securities issued by governments, municipalities, corporations, or other entities to…

Q: On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually…

A: SOLUTION- Semiannual Amortization Amount= 904000 * 10% * 6/12= 45200

Q: Gilooly Co. pur ased $78,0 year Lumpkin County bonds on May 11, ounty, at thel plus accrued…

A: Bonds: It is the fixed income security and created for the purpose of raising capital. They are…

Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…

A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…

Q: Up There IQ Inc. is a Gifted & Talented recruiting company that began operations on January 1, 20X1.…

A: Journal entry is the practice of recording commercial transactions for the first time in the books…

Q: Journalize the purchase. If an amount box does not require an entry, leave it blank

A: Given: Price of the bond = $ 20,000 Rate of the bond = 6 % Accrued interest = $ 400

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: Gillooly Co. purchased $135,000 of 6%, 20-year Lumpkin County bonds on May 11, Year 1, directly from…

A: All the events that occur in the business enterprise are required to be recorded. The books where…

Q: Doyle Company issued $390,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were…

A: Financial Statements:Financial statements consist of income statement,balance sheetand cash flow…

Q: Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1.…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $23,500,000…

A: Journal entries refers to the systematic documentation of the financial transactions of the company…

Q: On the first day of the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…

A:

Q: On January 2, Larkspur Company purchased 50, 10%, $1,040 Mikel Company bonds for $52,000 cash.…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Wildhorse Corporation had these transactions pertaining to debt investments: Jan. 1   Purchased 96…

A: Definition: Journal entry: Journal entry is a set of economic events which can be measured in…

Q: Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1.…

A: Journal entry is the primary entry that records the financial transactions initially.

Q: On January 1, 2024, X Corporation purchased bonds of R Corporation for $52 million 6%, 10-year…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On January 1, $858,000, 5-year, 10% bonds, were issued for $832,260. Interest is paid semiannually…

A: When the issue price is less than the face value of bonds the bonds are said to be issued on…

Q: Doyle Company issued $390,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were…

A: 1. Income Statement2. Balance Sheet3. Statement of Cash FlowThe first statement shows the income…

Q: Wildhorse Company purchased bonds with a face amount of $1225000 between interest payment dates.…

A: Bonds- A long-term debt under which a sum of money lends at a predetermined rate of interest, for a…

Q: > O On January 1, $853,000, 5-year, 10% bonds were issued for $827,410. Interest is paid…

A: Par value of bond = $853000 Issue price of bonds= $827410 Discount on bonds payable= $853000-$827410…

Q: On January 1, the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7%…

A:

Q: During two consecutive years, Antlers company, Inc., completed the following transactions: Year 1…

A: Prepare the journal entries for Year 1. Note: Face value per bond is assumed $100, so number of…

Q: Applegate Corporation sells $170,000, 9%, 20-year bonds for 96 on January 1. Interest is paid on…

A: Discount on bonds = Face value of bonds - issue value = $170000 - $170000*96/100 = $6,800

Q: January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is…

A: Bond is financial instrument which is used to raise funds for financial obligations. It can be…

Q: Entries for Investment in Bonds, Interest, and Sale of Bonds Bocelli Co. purchased $87,000 of 7%,…

A: Journal Entries       Date…

Q: Franklin corporation issues $84,000, 8%, 5-year bonds on January 1, for $87,780. Interest is paid…

A: Proceed from issuance of bonds $87,780Less: Face value of bonds $84,000Premium on bonds payable…

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.