On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields 10%.  Interest on these bonds is payable every December 31. On April 1, 2020, HI sold P600,000 face value bonds at 101 plus accrued interest. The debt investment is designated as at FVPL. The market value of the bonds were: Dec. 31, 2018-P108; Dec.31, 2019 - P106; Dec. 31, 2020 –P104.  What is the amount of gain or loss on the sale of bonds on April 1, 2020?

Q: On January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…

A:

Q: Required: Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)…

A: Issuance of bonds is one of the sources of financing, bonds are long-term debt for the company…

Q: Req 1 Req 2 to 4 Prepare the journal entries to record their issuance by The Bradford Company on…

A: The journal entry can be defined as the very first step where a transaction is entered into books of…

Q: On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale…

A: Prepare the necessary journal entries:

Q: On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated…

A: Bonds Payable: A bond payable is the long-term liability shown in the balance sheet that needs to be…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $82 million on January…

A: Bond is a tool for finance for the company. Generally companies borrow money from banks, but in this…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: Formula: Semiannual interest payment = Face value of bonds x rate of interest x no. of months / 12…

Q: mine the price of the bonds at January 1, 2021. re the journal entry to record their issuance by…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $45 million, dated…

A: Solution: Bond price is computed as present value periodic interest and maturity amount discounted…

Q: On january 1, 2018. Ellison Company purchased 12% bond provide the bondholders with a 10% yield.…

A: Scheduled of interest revenue and bond premium amortization 12%bond sold to yield 10% Date Cash…

Q: The Bradford Company issued 12% bonds, dated January 1, with a face amount of $99 million on January…

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

Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…

Q: Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record the bond…

A: The price of the bonds is the value of the bond, which has been derived after considering all the…

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…

Q: On January 1, 2019, YOU TOO Corporation purchased P1,000,000 10% bonds classified as FA@AC. The…

A: The reclassification date, as defined by IFRS 9 (International Financial Reporting Standards 9), is…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…

A: Given information Future value= 80,000,000 Number of years= 10 × 2= 20 Rate of interest= 12% ÷ 2=…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $94 million on January…

A: 1. Given, Face amount = $94000000 n = 10 x 2 = 20 i = 10%/2 = 5% Market yield = 12%/2 = 6% Cash…

Q: Bridgeport Co. sells $426,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

A: There are some scenarios when the company buys back from the market the bonds which has been issued…

Q: On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest.…

A: The bonds are issued at premium or discount depending on the market rate of interest of bonds.

Q: On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale…

A: Here problem related to the purchase of sales of securities and determination of fair value changes…

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.