On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of P40,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bond proceeds were P190,280 based on the present values at December 31, 2019 of the five annual payments. The total amount of unamortized discount as of December 31, 2020 is?

Q: LA Fitness Company issued a $10,000,000, 5-year, 7% callable bond on January 1, 2018, when the…

A: In the given question neither the face value of bond , nor the issue price of bond is given.…

Q: Tano Company issues bonds with a par value of $90,000 on January 1, 2021. The bonds' annual contract…

A: Par value of bonds$90,000Less: Proceed received$85,431Discount ($90,000 - $85,431)$4,569

Q: On January 1, 2020, MNOCompany issued its 9%, P2 million bonds, which mature on January 1, 2030. The…

A:

Q: 21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000…

A: Given: Face value = P5,000,000 Price = 99% Nominal rate = 10% Issue cost = P150,000

Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…

A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…

Q: Tano Company issues bonds with a par value of $91,000 on January 1, 2019. The bonds’ annual contract…

A: Bond Issued at Par:- When the company issued bonds at the face value of the security is known as the…

Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…

A:

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds’ annual…

A: Bond is a financial instrument which are issued by large organization to raise the fund. It is…

Q: On January 1, 2019, Black Panther, Inc. issued P4,000,000 of 9% bonds, dated January 1 at 97.…

A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…

Q: Tano Company issues bonds with a par value of $94,000 on January 1, 2021. The bonds' annual contract…

A: A bond is a debt security that is always issued by a company, municipality, or government. It is a…

Q: On January 1, 2020, Junibond issued 5-year 10%, P10,000,000 for P10,246,744. Interest and principal…

A: Amount of Annual installments = Issue value of the bonds / Present value factor at yield rate…

Q: Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10%…

A: Given that, Face value = P 10,000,000  Issue date = January 1, 2021 Coupon rate = 10%  Installment…

Q: Stanford issues bonds dated January 1, 2019, wi 3%, and interest is paid semiannually on June 30…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

Q: On December 31, 2019, Potter Corporation issued €2,000,000, 6%, 5-year bonds for €1,840,324. The…

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

Q: On March 1, 2021, BabyM company issued a four-year, P3,000,000 face value, 11% term bonds for…

A: Bonds issued at Premium: When a bond is issued at a premium, that means that the bond is sold for an…

Q: Huskey Mining Corporation issued bonds with a par value of $109,000 on January 1, 2023. The annual…

A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value amount…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: On January 1, 2021, Mawi Co. issued 1,000, P4,000, 12%, 3 years bonds for P4,198,948. Principal is…

A: The question is based on  concept of valuation of bond , value of bond is calculated as discounted…

Q: AAA Company issued bonds with face amount of P9,000,000 on January 1, 2020. The nominal rate of 6%…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On December 31, 2020, Dome Company issued P 4,000,000, 8% serial bonds, to be repaid in the amount…

A: The interest method of amortization of discount is the method used to amortize the discount or…

Q: On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds…

A: The calculation of interest expense has been made as follows: Interest expense for the year=Bond…

Q: On June 30, 2021, Moran Corporation issued $13.0 million of its 8% bonds for $11.7 million. The…

A: Lets understand basics. When bond is issued for less than its face value then it is known to be…

Q: On December 31, 2020, Balbond issued 3,000 of its 15-year 6%, P1,000 face value bonds for…

A: Lets understand the basics. For calculating carrying value of the bond, we will need use effective…

Q: On January 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on…

A: Discount on bonds payable = Par value of bonds - Issue price of bonds Interest expense = Issue price…

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: Bonds are longer term sources of finance for companies and bonds are lower cost of source of finance…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…

A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

Q: On June 30, 2021, Moran Corporation issued $13.5 million of its 6% bonds for $12.1 million. The…

A:

Q: On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable…

A: Semiannual Stated interest rate=Annual rate2=9%2=4.5%

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. What is the amount of the premium on these bonds at issuance? When a company issues bonds at the…

Q: On January 1, 2020, Sabond issued a 5-year 12%, P10,000,000. Interest is payable annually every…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present…

Q: Awla Limited issued $1 million of 10-year, 5% bonds on January 1, 2021, when the market interest…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: Determine the price of the bond:   Present value of principle amount ($200,000, 4%, 10 years)…

Q: Lassen Corporation issued ten-year term bonds on January 1, 2020, with a face value of $800,000. The…

A: Bond is an investment security with low risk and low return. A fixed rate of interest is attached…

Q: On December 31, 2020, Balbond issued 3,000 of its 5-year 6%, P1,000 face value bonds at par.…

A: The effective rate of interest paid is the effective interest rate. The target or required interest…

Q: On June 30, 2021, Allen Corporation issued $4 million of its 8% bonds for $3.5 million. The bonds…

A: The bonds are issued at a discount when the interest offered by the market is greater than the…

Q: n April 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on April 2,…

A: Price of bond is the present value of coupon payment and present value of the par value of the bond…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $880,000. The bonds' annual…

A: Answer 1:

Q: On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest…

A: Relay Company issued 3 year, 12% bond having face value P 3,000,000 on January 1, 2021. Effective…

Q: Using effective interest method, what amount of the bond discount should be amortized for the six…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

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.