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: 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: Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin County bonds on May 11, Year 1, directly from…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: Use this information for Pierce Company to answer the question that follow. On May 1, Pierce Company…

A: Concepts and reason Financial instrument: Monetary value of any document is called as financial…

Q: Cheyenne, Inc. had outstanding $6,420,000 of 11% bonds (interest payable July 31 and January 31) due…

A: The bonds can be issued either at a discount or premium. Generally, the bonds are issued at a…

Q: Gillooly Co. purchased $162,000 of 5%, 20-year Lumpkin County bonds on May 11, Year 1, directly from…

A: Journal entries are entered in account books to record each and every financial transaction related…

Q: On January 1, Splash City issues $310,000 of 7% bonds, due in 15 years, with interest payable…

A: Bonds are a form of loan or debt issued by the company, on which regular interest payments needs to…

Q: a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

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: 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 April 30, CHIA-SEED Company issued 7,000 of 15% P1,000 bonds at 95. The bonds have a five- year…

A: Y/2 = (I + (F - NI)/n)/((F + P)/2)

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: 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: 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: 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: Ratzlaff Company issues $2 million, 10-year, 8% bonds at 97 (i.e. at 97% of face value), with…

A: The journal entry would be as under : Particulars Debit ($) Credit ($) Cash 1,940,000…

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

A: Journal Entries       Date…

Q: Doyle Company issued $235,000 of 10-year, 6 percent bonds on January 1, Year 1. The bonds were…

A: Financial statements include the preparation of balance sheet that reflects the financial position…

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.…

Q: Soap Company issued $200,000 of 8%, 5-year bonds on January 1, 20X6. The discount on issuance was…

A: A bond is issued by the company for raising finance for the business working. It is considered a…

Q: Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The…

A: As the company is purchasing both bonds and their accrued interest. So both should be debited and…

Q: On January 1, $877,000, five-year, 10% bonds, were issued for $850,690. Interest is paid…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Discount on bonds=$74,000,000-$63,532,267=$10,467,733

Q: Swifty Corporation issues $2.70 million, 10-year, 7% bonds at 95, with interest payable each January…

A: Par value of bond is $100 and the issue price is $105 therefore premium on bond is $5 per bond The…

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

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.