Gillooly Co. purchased $78,000 of 7%, 10-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 $30,000 of the Lumpkin County bonds at 101 plus $175 accrued interest less a $335 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. a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 b. Semiannual interest on October 1. Year 1 Oct. 1 c. Sale of the bonds on October 31. Year 1 Oct. 31

Q: Required information [The following information applies to the questions displayed below.] Doyle…

A: 1. Accounting Equation -Accounting Equation is calculated using following equation -Assets =…

Q: 5M Corp. issued $100,000, 6%, 10 -year bonds payable on April 30 at 97. The bonds were authorized on…

A: Interest accrued = Face value of the bonds x interest rate x No. of months/ months= $100,000 x 6% x…

Q: The Levi Company issued $96,000 of 6% bonds on January 1 of the current year at face value. The…

A: Interest expense refers to the costs incurred in respect to the loans, bonds and other debts…

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: Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% callable bonds on…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued…

A: Introduction: Premium on bonds: When receiving cash for the bonds issued is greater than face value…

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: 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: Rushton Corp., a wholesaler of music equipment, issued $3,650,000 of 20-year, 14% callable bonds on…

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

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: Ivanhoe Company issues $3,000,000, 10-year, 8% bonds at 93, with interest payable each January 1.…

A: The bonds are the financial instruments for the business used to raise money from the market. The…

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: 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: 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: Un January 1, a corporation issued $5,300,000, 13%, 6-year bonds for $6,251,015. Interest is payable…

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

Q: ovide Journal entries necessary to record Topsails investment in Charlie companys bonds from January…

A: Step 1 Journal is the part of book keeping.

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: Maxwell Manufacturing issued $480,000, 12-year, 8% bonds at 107, paying semiannual interest. What is…

A: Given, Face value of bonds = $480,000 Coupon rate = 8% Issue price at 107   Number of periods = 12*2…

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: Franklin Corporation issues $95,000, 10%, 5-year bonds on January 1 for $99,300. Interest is paid…

A: The actual interest payable = $ 95,000 * 10% * 6/12 = $ 4,750. The amortization of bond premium for…

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: 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: On January 1, Year 1, Gibson Corporation purchased bonds issued by Williamson Company. These bonds…

A: The objective of the question is to calculate the interest revenue that Gibson Corporation should…

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…

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

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