On January 1, 2024, Baddour, Incorporated, issued 10%, 12-year bonds with a face amount of $176 million. The bonds were priced at $154 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2024? What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2024? What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2024? In which section(s) should the amount(s) appear? Note: For all requirements, enter your answers in whole dollars.

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

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

Q: Marin Corporation issued $468,000 of 6% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: A bond is a fixed-income instrument that is used to raise capital by organizations. Bonds are issued…

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

A: A liability account called "Bonds Payable" shows up on a business's balance sheet. It shows the…

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 March 1, 2021, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A: Bonds Payable: Bonds payable are recorded when a company issues bonds to generate cash. Cash…

Q: On January 1, 2018, Quinton Corporation issued 8% bonds with a face value of $100,000. The bonds are…

A:

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

Q: Vadercat Limited issued $30 million 4.5 percent, 15 year bonds on September 1, 2020. The market rate…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Mellilo Corporation issued $4.4 million of 20-year, 9.5 percent bonds on July 1, 2021, at 98.…

A: Journal entry is the first stage of accounting process. Journal entry used to record business…

Q: On January 1, 2025, Flounder Corporation issued $550,000 of 7% bonds, due in 8 years. The bonds were…

A: Journal Entries - Flounder CorporationDateAccount Title & ExplanationDebitCredit1-Jan-25Cash…

Q: On 3/1/2020, Taft Corporation issues 17-year bonds, dated 1/1/2020, with a par value of $300,000.…

A: Bonds payable is the liability recorded when the company generates cash by issuing the bonds.…

Q: Blossom Ltd. issued a $1,030,000, 10-year bond dated January 1, 2023. The bond was sold at 97.…

A: When bonds are issued at a discount, it means that the initial sale price of the bonds is less than…

Q: On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of…

A: When bonds are issued at premium the premium on bonds payable is amortized over the life of the…

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

A: Bonds are bearer financial instruments with fixed interest that businesses issue to raise capital.…

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

A:

Q: On March 1, 2021, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A: Requirement 1:

Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…

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

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

A: A bond is a fixed-interest bearer financial instrument that is issued by companies for raising…

Q: Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds:…

A: Bonds are debt instruments issued by organizations to raise funds to meet various requirements. The…

Q: Bonita Corporation issued $564,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: Bonds:The bond is the financial instrument that is used by the company to get the loan amount so…

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: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…

A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…

Q: elmania, Incorporated, issues 7%, 15-year bonds with a face amount of $64,000 for $58,467 on January…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Xonic Corporation issued $8.4 million of 20-year, 8 percent bonds on April 1, 2024, at 102. Interest…

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

Q: 000. Intere 1, 2026. Th nounts to P1: rued interest

A: Journal  entries  in the books  of Prancer  Co. for the year 2021 Date 2021 Particular  Post…

Q: Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds:…

A: Bond is a form of debt used by the entity to raise money for various purposes such as operations,…

Q: Sciamanna Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market…

A: The cash borrowed on January 1, 2022 would be present value of interest annuity & maturity…

Q: Deleau Equipment Ltd. issued 11%, five-year bonds with a face value of $80,240,000 on October 1,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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

A: The discount or premium on an issued bond is amortized to find the carrying value of the bond…

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: 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 July 1, 2020, Center Company issued for $598,964, 10%, 20-year bonds with a face value of…

A: Bonds payable are issued to collect long-term funds for the business entity. Bonds carry a fixed…

Q: Net Work Corporation, whose annual accounting period ends on December 31, issued the following…

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

Q: Sheffield Company issued $400,000, 12%, 10-year bonds on January 1, 2022, for $423,557. This price…

A: Lets understand the basics.There are two methods through which amortization of bond premium or…

Q: punts. Record journal entries in the order presented in the problem. List all debit entries before…

A: When bonds are issued at price lower than their par value, they are issued at a discout. The…

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 May 1, 2024, Green Corporation issued $1,200,000 of 8% bonds, dated January 1, 2024, for…

A: A bond is a source of finance. Usually,Usually companies and governments issue bonds to the public.…

Q: Donner Corporation issues 4-year bonds with a face value of $5,000,000 and a stated rate of 5% on…

A: Interest Expenses are calculated on book value of bonds as per market rate of interest i.e. 6%

Q: On January 1, 2024, Instaform, Incorporated, issued 14% bonds with a face amount of $50 million,…

A: "Bonds" refer to debt securities that are typically issued by corporations, governments, or other…

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.