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

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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 January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on…

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

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Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…

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…

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A: Interest Payment on Bond as per effective interest amortization method: The interest payment on a…

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A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

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: On January 1, 2021, Flamengo Co. issued a four-year, $10,000, 7% bond. The interest is payable…

A: A bond is a financial debt security issued by large business organizations or governments. It is…

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: Ozzie Smith Co. issues $30,000,000 of 5-year, 6.6% bonds on April 1, 2020 at par plus accrued…

A: Bonds are the financial liabilities for a company which is payable at the end of specific term.

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 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…

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A: A bond is an instrument of an indebtedness to the holders of bond issuer in finance. The most…

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

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 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…

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Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…

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

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

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Q: Nash Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Bonds represent debts issued by the firm to meet the capital requirements. They act as a promise by…

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

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

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: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest…

A: One of the source used by the business organizations to meet their financial requirements is issue…

Q: compute the present value of interest and the principle amount

A: Present value is the sum of present value of future cashflow discounted with the required rate of…

Q: How much cash was paid on December 31, 2021? What is the interest expense for the year 2021?  What…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On January 1, 2019, Company X issued $550,000 of twenty-year bonds when a market rate was 2%. The…

A: The carrying value of a bond refers to the face value plus any unamortized premium or minus any…

Q: On January 1, 2021, an investor paid OR291, 000 for bonds with a principal amount of OR300,000. The…

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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…

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.