On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on January 1, 2026. The bonds were issued for P354,000 to yield 12%, resulting in a bond discount of P46,000. Denver uses the interest method of amortizing bond discount. Interest is payable semi-annually on July 1 and January 1. For the six months ended June 30, 2016, Denver should report bond interest expense at –

Q: On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on…

A: Formula: Adjusted unamortized bond premium at December 31, 2009 = Total bond premium - Amortization…

Q: Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1,…

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…

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

Q: On January 1, 2024, Burton Sales issued $23,000 in bonds for $35,800. These are ten-year bonds with…

A: BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…

Q: On July 1, 2013, AC Corporation issued one thousand of its 10%, P1,000 callable bonds for P960,000.…

A: Total discount on bonds = Face value of bonds - issue value = P1000000 - 960000 = P40,000

Q: On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a…

A: Bonds payable is a form of liability being incurred by the business, on which regular interest…

Q: On June 30, 2016, Hardy Corporation issued $10.5 million of its 8% bonds for $9.5 million. The bonds…

A: Bond Issued = 8% or 4% SemiannuallyBonds were priced to yield = 10% or 5% Semiannually Calculation…

Q: On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Given information is: On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds…

Q: Nicholas Ram Corporation have a $1,500,000 "bond issue" dated March 1, 2016 due in 15 years with an…

A: The premium on the bond is the difference between the selling price and the face value of the bond.…

Q: On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:   Compute the amount of liability.

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

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

Q: On January 1, 2017, Surreal Manufacturing issued 780 bonds, each with a face value of $1,000, a…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: On January 1, 2016, United Corp. issued its 9% bonds in the face amount of P 2,000,000, which mature…

A: Bonds is an investment security in which investors invest amount in exchange of regular interest…

Q: On March 1, 2018, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A:

Q: On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: Metro Inc. issued $200,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20…

A: Bond is financial investment securities where investors lend money to a person. Interest and…

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: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: $939,000 to yield 10%. Alquds uses the effective-interest method of amortizing bond discount.…

A: Un amortized bond discount ,7/1/ Year 1   Bond discount amortization ,7/1/ Year 1 to  6/30/Year3:…

Q: On January 1,2025 Waterway Corporation issued $390,000 of 9%% bonds, due in years. The bond issued…

A: Bonds are often utilized by both public and private sectors to generate capital for a variety of…

Q: On January 1, 2019, Castle Services issued $177,000 of six-year, 12% bonds when the market interest…

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

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Calculate the present value of the principal amount as shown below:

Q: Martinez Ltd. issued a $1,060,000, 10-year bond at par on January 1, 2023. The bond paid 10%…

A: Journal entry is required to make to record event and transaction that are occured during particular…

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: Gridley Company issued $988,000, 12%, 10-year bonds on December 31, 2014, for $928,720. Interest is…

A: Discount on bonds payable = Face value of bonds issued - selling price ofBonds  = $988,000 -…

Q: On December 31, 2018, White Company issued $400,000 of five-year, 12% bonds payable for $430,887,…

A: Premium on bonds = Issue value - Face value = $430,887 - $400,000 = $30,887

Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…

A: Solution:- The amount of interest expense recognized by Babb Trailers, Inc. on the bond issue for…

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

A:

Q: Romania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,736 on January 1,…

A: 1. Record the bond issue. Date Accounts & Explanation Debit Credit Jan 1, 2012 Cash $…

Q: On January 1, 2006, Ward Company issued its 9% bonds in face amount of P4,000,000, which mature on…

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

Q: On July 1, 2022, Free Compnay issued for $438,000, 500 of its 8%, $1000 bonds. The market rate when…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

Q: On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Interest payment = Face value of bonds x rate of interest x time = $100 million x 6% = $6 million

Q: On May 1, 2016, Bench Co. issued 11% bonds in the face amount of P 1,000,000 that mature on May 1,…

A: Solution: Face amount of bond= P1,000,000 Premium on issue of bond = P62,000 Issue price of bond =…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

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

Q: On 1/6/2017, EB issued a subscription bond worth 400,000 dinars at an interest rate of 8% annually,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 1. Compute the amount of cash Rahman Co. received on 1/1/2016. Prepare an amortization table for…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: Crane Company issued $310,000,6%,10-year bonds on January 1, 2022, for $333,936. This price resulted…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: On January 1, 2016, Bonita Industries issued $4,000,000 of its 10% stated rate bonds for $4,475,661…

A: Extinguishment of debt  Liability is eradicated from company's balance sheet under extinguishment of…

Q: On September 30, 2016, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Determine present value of annuity amount (interest).

Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

Q: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue,…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On January​ 1, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of…

A: 1) Premium on bonds payable = 1800 bonds * $5 = $9,000 It has to be amortised over the life of bonds…

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

Q: On January 1, 2016, Mary Co. issued its 10% bonds in the face amount of P 1,500,000 which mature on…

A: A bond is a fixed-income investment vehicle that represents an investor's obligation to a borrower…

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.