Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying amount of the bonds on January 1, 2021, is P4,760,000. The bonds mature on January 1, 2024, and pay interest annually on December 31.                                                The entity sold 1,500 bonds on December 31, 2021, for P1,920,000 after the interest has been received.                                                                                                                                        How much is the gain on sale on December 31, 2021?

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: A liability account called "Bonds Payable" shows up on a business's balance sheet. It shows the…

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: On March 1, 2022, a company issued a four-year, P3,000,000  face value, 11% term bonds for…

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

Q: Lowfood Corporation issued 10-year USD5,000,000 8 percent bonds on March 1, 2012, with a maturity…

A: The bonds are treated as a long-term liability because there are to be paid in more than a year. The…

Q: On March 1, 2016, VICO Corporation issued at 103 plus accrued interest, 1,000 of its 9%, P1,000…

A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…

Q: The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The…

A: The carrying value of a bond is computed by adding an unamortized premium or subtracting the…

Q: On January 1, 2020, Kansas, Inc. issued ₱100,000, 10%, 10-year bonds when the market rate of…

A: A bond is issued by an entity in order to raise funds for the business. The issuer pays fixed…

Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…

A: solution : given: face vale            =4000000 interest payable            = semiannually interest…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: On 01.01.2020, Latvia Company's Issued 3 years bonds with face value = 5000000 Issued price = 98…

Q: The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The…

A: The bond is purchased in order to earn a regular fixed interest with low risk. Bonds are issued by…

Q: In the statement of financial position of Leblanc Company as of December 31, 2020, the following…

A: Redemption of the bonds = Face value of Bonds Payable x Redemption value / 100 = P1,000,000 x 98/100…

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

Q: On November 1, 20x4, Madison Corp. issued ₱800,00 of its 10-year, 8% term bonds dated October 1,…

A: Bond interest rate is the total interest expense paid on an organization's bonds due over a…

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on…

A: Carrying  value of bond = issue amount + interest  accrued  - interest  paid

Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…

A: Unamortized discount on bonds payable of 333,906

Q: Brazzle Inc. issued $ 200,000 face value bonds at a discount and received $ 185,000 . At the end of…

A: Net liability at year end = face value of bonds - Discount on Bonds Payable

Q: • On January 1, 2020, X Company purchased $2,000,000 in bonds that will mature in 10 years and pay…

A: Company needs capital and funds for the purpose of financing its assets. In order to finance the…

Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…

A: Coupon Rate: Coupon interest rate are the rate of interest paid on the bonds. The coupon rate is…

Q: On July 1, 2020, Wheeler Company purchased $4,000,000 of Duggen Company's 8% bonds, due on July 1,…

A: Amount of interest revenue for the year ended December 31, 2020: = Amount paid on bonds purchased x…

Q: interest inco

A:

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: Chicken Wings company issued P1 million face value bonds for P1,032,880 on January 2, 2022, a price…

A: Interest expense = issue price of bond ×yield

Q: bonds on January 2, 2022 for $540,000. In addition, the company incurred $50,000 in bond issue…

A: To calculate the correct amount of bond interest expense to be recorded on December 31, 2022, we…

Q: PTD Co. issued USD4,000,000 maturity value, 12% bonds for USD4,000,000 cash on January 1, 2014.  The…

A: First interest payment will be made on July 1, 2014

Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: PECAN Company issued ₱10,000,000 face value bonds at 95 plus accrued interest on March 1, 2021.…

A: Interest accrued on bonds = Face value of bonds x rate of interest x no. of months/12 = ₱10,000,000…

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: INTEREST EXPENSE IS THE COST INCURRED BY AN ENTITY FOR THE BORROWED FUNDS .

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: The discount or premium on an issued bond is amortized to find the carrying value of the bond…

Q: Sheridan Industries, Inc. issued $17,400,000 of 8% debertures on May 1, 2024 and received cash…

A: The objective of the question is to calculate the total dollar amount of discount or premium…

Q: 1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued…

A: Net Cash receipt as a result of Bond issuance shall include all cashflows such as Accrued Interest…

Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Given information Face value of bond = P 8,000,000 Life of bond = 6 years Number of periods = 6 x…

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.