On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $864,887. The market rate of interest when the bonds were issued was 8%. Under the effective-interest method, the interest expense for the six months ending July 1, 2020, would be closest to

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: On January 1, 2025, Stellar Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were…

A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…

Q: On January 1, 2025, Waterway Corporation issued $510,000 of 7% bonds, due in 8 years. The bonds were…

A: The bonds are reported as long term liabilities in the balance sheet. The bonds are issued at…

Q: On January​ 1, 2018, Ling Services issued​ $168,000 of​ six-year, 12% bonds when the market interest…

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

Q: On January 1, 2018, Reese Incorporated issued bonds with a face value of $140,000, a stated rate of…

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 January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

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: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were…

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

Q: On January 1, 2020, Jade Company issued $2,000,000 face value, 7%, 10-year bonds at $2,147,202. This…

A: The effective-interest method of evaluating the bonds amortization considers the market rate of…

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, 2025, Bridgeport Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds…

A: Issue of bonds at premium When the bonds are issued by a company in excess of its normal value, then…

Q: On June 30, 2020, the market interest rate is 6%. Burnaby Enterprises issues $525,000 of 7%, 17-year…

A: Bond carrying amount is calculated by adding the premium account balance in the previous carrying…

Q: On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…

A: a.

Q: Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest…

A: Effective Interest rate refers to the compounded interest rate that the bond holder actually pays as…

Q: On January 1, 2025, Shamrock Corporation issued $680,000 of 9% bonds, due in 8 years. The bonds were…

A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…

Q: On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: On January​ 1, 2018​, Technicians Credit Union, ​(TCU​), issued 8%​, 20​-year bonds payable with a…

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

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: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: bonds, du 8 years. interest each July 1 and January 1. The effective-interest rate is 8%. Date…

A: Bonds payable is long term liability as these are issued to raise funds. When the contract rate is…

Q: On January 1, 2025, Wildhorse Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds…

A: The bonds payable are issued to raise the long-term funds at a fixed rate of interest. Bonds can be…

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, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

Q: On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were…

A: The bonds are issued at a premium when the interest earnings on bonds are more than the interest…

Q: On January 1, 2025, Stellar Corporation issued $450,000 of 7% bonds, due in 10 years. The bonds were…

A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…

Q: On January 1, 2020, Novak Corporation issued $510,000 of 7% bonds, due in 8 years. The bonds were…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On January 1, 2020, Trapp Enterprises issued 9%, 10-year bonds with a face amount of $900,000 at 96.…

A: Please find below the entries -

Q: On June 30, 2020, the market interest rate is 7% Moreau Enterprises issues $500,000 of 8% , 19-year…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

Q: On April 1, 2019, Company Y issued a 10-year bond for $5,265,750. The bonds have a stated rate of 5%…

A: On 01.04.2019, Company Y issued 10 year bond = $5265750 Interest rate on bonds = 5% Pays semi…

Q: On January 1, 2022, Johnson Company issues $100,000 face amount bonds. These bonds pay 7% APR…

A: Given details Face value of bonds = $100,000 Semiannual Interest rate = 7%/2 = 3.5% Semiannual…

Q: On January​ 1,2018​, Technicians Credit Union, ​(TCU​), issued 8%​, 20​-year bonds payable with face…

A: Premium on bonds payable = 900,000 * 8% = $72,000 Premium on bonds payable on June​ 30, 2018…

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.