On January 1, 2021, Canada Corp. purchased bonds with a face value of P7,500,000 and a stated interest rate of 10% per year payable semi-annually every June 30 and December 31. The bonds were acquired to yield 11%. These were recorded as financial assets at amortized cost. On July 31, 2024, the bonds were sold at 111 including accrued interest. How much is the purchase price of the bonds? Round off to the nearest whole number.

Q: On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $460…

A: Lets understand the basics.Bonds payable are one of the sources of finance and are shown as…

Q: Brian Lee Company sells 8% bonds having a maturity value of $2,240,000 for $1,917,020. The bonds are…

A: The bonds are the long-term debt instruments. The coupon rate is fixed at the time of the issue of…

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: Myriad Solutions, Inc. issued 14% bonds, dated January 1, with a face amount of $410 million on…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: On January 1, 2023, Bridgeport Corporation purchased a newly issued $1,250,000 bond. The bond…

A: The price of a bond is equal to the sum of the present value of coupon payments and the present…

Q: On January 1, 2024, Ithaca Corporation purchases Cortland Incorporated bonds that have a face value…

A: Bond is a financial instrument which can be issued at discount, at par or at premium depending on…

Q: William Brown Company sells 8% bonds having a maturity value of $1,550,000 for $1,432,484.00. The…

A: The effective interest rate is the return on a savings account or interest-paying investment. The…

Q: Blossom Inc. issued $884,000 of 10-year, 3% bonds on January 1, 2024. Interest is to be paid…

A: A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors…

Q: On January 1, 2020, Everly Bottle Company sold $4,000,000 in long-term bonds. The bonds will mature…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: Bonds with a stated interest rate of 9% and a face value totaling $632,000 were issued for $657,280…

A: Bond amortization refers to the value which is paid at every period including the amount of…

Q: On January 1, 2024. Ithaca Corporation purchases Cortland Incorporated bonds that have a face value…

A: Bond is a debt security which is purchased to earn the fixed interest on the investment with low…

Q: On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of…

A:

Q: On June 1, 2024, Carla Vista Bottle Company sold $2,880,000 in long-term bonds for $2,526,064. The…

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: On June 30, 2024, Single Computers issued 8% stated rate bonds with a face amount of $100 million.…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: Agee Technology, Incorporated, issued 9% bonds, dated January 1, with a face amount of $1,300…

A: A cash flow statement is a type of financial statement that details a company's inflows and outflows…

Q: • On January 1, 2020, X Company purchased $2,000,000 in bonds that will mature in 10 years and pay…

A: Company needs capital and funds for the purpose of financing its assets. In order to finance the…

Q: The balance sheet of Rays Corporation as of December 31, 2022, included 10.25% bonds having

A: Total Debit to p&l = Discount on issue of debentures + Premium on redemption of Debentures.

Q: On January 1, 2024, Rare Bird Limited purchased 15% bonds dated January 1, 2024, with a face amount…

A: The bonds a debt securities issued by corporations and government entities to raise funds. Bonds are…

Q: Brian Lee Company sells 8% bonds having a maturity value of $2,240,000 for $1,917,020. The bonds are…

A: The bonds are issued to raise the money from the market or investors. The bonds are issued at a…

Q: Tahoe Tent Ltd. issued bonds with a par value of $803,000 on January 1, 2023. The annual contract…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: What would be the net amount of the liability Myriad would report in its balance sheet at December…

A: Bonds are issued by companies and government entities to raise the required funds for meeting the…

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, 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 December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

Q: On Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The…

A: Given: The value includes face value of P2,400,000 for P2,160,000 cash. It will be paid in…

Q: Tahoe Tent Ltd. issued bonds with a par value of $811, 000 on January 1, 2023. The annual contract…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: please step by step answer.

A: Step 1: To find the carrying value of the bonds on December 32, 2026, we need to calculate the…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31, 2025.…

A: Interest expense = Previous period's Carrying amount of bonds * 8% * 6/12   Premium Amortization…

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: On June 1, 2024, Blossom Bottle Company sold $3,720,000 in long-term bonds for $3,262,833. The bonds…

A: Bonds are a long-term liability that are issued for a fixed term. A periodic fixed interest is paid…

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: Bonds payable are a liability of the issuing company. It is normally recorded as a long-term…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

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.