On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually every June 30 and December 31. On May 30, 2021 the bonds were retired for P1,030,000.   Assuming only P600,000 face value bonds were retired @105, the carrying value of the bonds as of December 31, 2021 is?

Q: On March 1, 2020, Sandollar Inc. issued $90,000 of bonds at 105, paying 8% cash interest…

A: Journal: Recording of a business transactions in a chronological order.   As posted multiple sub…

Q: On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000…

A: Solution: Interest expense for the six months ended December 31, 2019 = Issue price * 10% *6/12  =…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: Marin Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: On July 1, 2020, Riviera Manufacturing Co. issued a five-year note payable with a face amount of…

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

Q: A company sold bonds on January 1, 2021, for $207,913. This price represents a market rate of 9% on…

A: Bonds sold at premium: When the bonds are sold at a price more than its face value then the excess…

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2024, Martin Company issued $5,000,000, 10% bonds.  Interest is payable semi-annually…

A: A financial table that shows the periodic payments and the distribution of principal and interest…

Q: The interest expense on the income statement for the year ended December 31, 2021 is:

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: On January 1, 2021, Green company issued P1,000,000, 12% bonds for P1,065,000, a price that yields…

A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…

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: (A) Bridgeport Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September…

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

Q: de, Inc. issued $758,000 of bonds on December 15, 2022, when the market rate of interest was 6%. The…

A: Here are the journal entries to record the issuance of the bonds on December 15, 2022, and the…

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 January 1, 2020, the company issued $2,500,000 6% bonds with a 10-year maturity. The bonds were…

A: Solution:- We know, Present Value of a bond = Present value of benefits receivable from bond…

Q: On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a…

A: Bonds payable refer to financial instruments which can be issued to raise capital. Bonds are issued…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

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, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which…

A: Working note: Computation of issue price of bonds, Discount, par value of bond:

Q: On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1,…

A: The accrued interest is the current liabilities for the business, which is due for payment but not…

Q: P642,007.30 in b

A: Introduction Present value of bond:-

Q: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…

A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…

Q: 1.On January 1, 2020, Chespin Co. issued 3-year bonds with a face value of P1,200,000 and stated…

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

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

A: A bond seems to be a sort of financial instrument used by a business to borrow money. A bondholder…

Q: On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is…

A: Accrued interest = Face value of bonds x rate of interest x no. of months / 12 months where, Rate of…

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: At January 1, 2020, Konerko Corp. issued $40,000,000 of 6%, 12-year bonds that paid interest…

A: Bonds: It is also known as fixed-income security, is a debt instrument created for the purpose of…

Q: On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest…

A: Bond is issued by the companies in order to raise fund. The bondholders receive a fixed amount of…

Q: XYZ company issues R$100,000 in bonds dated January 1, 2020, due in five years with 9 percent…

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

Q: On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P2,000,000 due March 1,…

A: Computation of issue price of bond and discount on issue of bond

Q: X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each…

A: Annual market interest rate = InterestCarrying value

Q: On April 1, 2019, Ellison Co. issued 4-year, 7%, $100,000 face value bonds. The bonds were issued at…

A:

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

A: PV of cash flows=Present value of Future payments(Interest+Face value) @ YTM

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: On January 1, 2022, Nuptam Corp. issued $1,300,000 par value, 8%, 3-year bonds when the market rate…

A: The bond issue costs are also incurred sometimes like legal fees commission etc. The bond issue cost…

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.