On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $140 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30.Required:1. What would be the amount(s) related to the bonds Baddour would report in its balance sheet at September 30, 2021?2. What would be the amount(s) related to the bonds that Baddour would report in its income statement for the year ended September 30, 2021?3. What would be the amount(s) related to the bonds that Baddour would report in its statement of cash flows for the year ended September 30, 2021?

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

Q: On January 1, 2021, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:

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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.

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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 October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…

A: Interest accrued on dec 31, 2021 = face value x rate of interest x no. of months/12 = $864000 x 8% x…

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…

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A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

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A: The bonds are issued at par when market rate is similar to coupon rate of bonds.

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A: The amount at which a bond is sold in the financial markets is called its selling price. generally,…

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A: Answer:-  Bonds meaning:-Bonds are tradable assets that are securitized versions of corporate debt…

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

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A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

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

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

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A: a.

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A: Computation of amount that is reported for interest expense in 2019 as follows: Result:

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

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A: Concept Given Date of issue January 1 2021 Face value 100000 Coupon rate 9%…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

A: Solution: Face value of bond = P5,000,000 Issue price of bond = P4,695,000

Q: On the July 1, 2021, Trials Corporation issued $17,500,000 of five-year, 12% bonds to finance its…

A: Bonds are issued to generate funds. When the contract rate of interest is more than the market rate…

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A: The answer of the above question is in the Next Step

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.