Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin 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, Gillooly Co. sold $90,000 of the Lumpkin County bonds at 98 plus $450 accrued interest less a $200 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Question Content Area a.  The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11     - Select - - Select -       - Select - - Select -       - Select - - Select -   Question Content Area b.  Semiannual interest on October 1. Year 1 Oct. 1     - Select - - Select -       - Select - - Select -       - Select - - Select -   Question Content Area c.  Sale of the bonds on October 31. Year 1 Oct. 31     - Select - - Select -       - Select - - Select -       - Select - - Select -       - Select - - Select -   Question Content Area d.  Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31     - Select - - Select -       - Select - - Select -   Question Content Area e.  The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20. Year 20 Apr. 1     - Select - - Select -       - Select - - Select -

Q: Bocelli Co. purchased $24,000 of 5%, 10-year Sanz County bonds on May 11, Year 1, directly from the…

A: given that, purchase price of the bonds = $24000 rate of interest on bonds = 5%. interest recievable…

Q: On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to…

A: a.

Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…

A: The objective of the question is to journalize the purchase, receipt of interest, and sale of…

Q: On January 1, $932,000, 5-year, 10% bonds, were issued for $904,040. Interest is paid semiannually…

A: Solution: Discount on issue of bond = $932,000 - $904,040 = $27,960 Nos of semiannual periods = 5*2…

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 the first day of its fiscal year, Ebert Company issued $76,500,000 of 10-year, 7% bonds to…

A: The bonds are reported as long-term liabilities in the books. The bonds are issued at a discount…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $40,000 on…

A: Interest received = Face value of Investment x rate of interest x no. of months /12 =…

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: 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: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $42,975 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: Entries for bond (held-to-maturity) investments Gillooly Co. purchased $24,000 of 8%, 12-year…

A: 1st entry is correct  B. Year 1 Oct 1 Cash.                          960…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on…

A: Interest revenue = Carrying value of Investment x market rate of interest x no. of months /12 =…

Q: Bocelli Co. purchased $162,000 of 7%, 20-year Sanz County bonds on May 11, Year 1, directly from the…

A:

Q: Salt Foods purchases fifty $1,000, 5%, 10-year bonds issued by Pretzelmania, Inc., for $54,088 on…

A: As it is semi annual bond interest is paid twice in a year  Bond is issued at a premium of $ 4088

Q: On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 8% bonds to finance…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $40,000 on…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: Metro Company purchased $100,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on…

A: Bonds investments is one of the important investments being done by the business. Available for sale…

Q: On January 1, $834,000, 5-year, 10% bonds, were issued for $808,980. Interest is paid semiannually…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…

A: Investment in bonds Bonds also known as fixed income instruments are used by governments or…

Q: Burris Corporation is authorized to issue $940,000 of 6% bonds. Interest on the bonds is payable…

A: The objective of this question is to prepare the journal entries for the issuance and interest…

Q: On January 1, $954,000, 5-year, 10% bonds, were issued for $925,380. Interest is paid semiannually…

A: Discount = Face value - Issued amount = $954000-925380 = $28620 Term of bonds = 5 years i.e 10…

Q: On the first day of its fiscal year, Chin Company issued $26,400,000 of five-year, 5% bonds to…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: eBook Show Me How Entries for investment in bonds, interest, and sale of bonds Instructions Chart of…

A: The procedure by which a bond issuer provides bonds to investors in return for funding is referred…

Q: Company purch Gone by the mon Required: a. Journalize the entry for the bond purchase. b. Journalize…

A: No Date General journal Debit Credit a Sep 1 Bond investment 84000       Interest receivable…

Q: a. Purchase of bonds on August 1, Year 1. b. Receipt of first semiannual interest payment on…

A: a) Date General Journal Debit Credit 01-Aug Investments-Ant Company Bonds    1,500,000.00…

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.