On May 1, 2021, Sunland Company issued $1430000 of 7% bonds at 102, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Sunland’s common stock, $15 par value, were attached to each $1000 bond. The bonds without the warrants would sell at 96. On May 1, 2021, the fair value of Sunland’s common stock was $35 per share and of the warrants was $2. On May 1, 2021, Concord should record the bonds with a premium of $42 900 discount of $14 300 discount of $57 200 discount of $29 744.

Q: Sarasota Inc. issued $4,170,000 of 10%, 10-year convertible bonds on June 1, 2020, at 97 plus…

A: Solution: When a bond is sold at a discount, the amount of the bond discount must be amortized to…

Q: On July 1, 2021, an interest payment date, $148000 of Bramble Corp. bonds were converted into 2930…

A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

Q: equired: ) Determine the price of the bonds on January 1, 2024. ) By how much will ABC Company's…

A: Bond issuance date Jan,1,2024 10% Bond -$ 800000 Yield 8% Interest is payable on 30 June and 31Dec…

Q: Waterway Inc. issued $15,400,000 of 12%, 40-year convertible bonds on November 1, 2020, at 98 plus…

A: a). Date Account title & Explanation Debit($) Credit($) December 31,2020 interest payable…

Q: On July 1, 2023, Sandhill Ltd., which follows ASPE, issued 1,000 convertible, five-year, $1,000…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: On July 1, 2020, Martinez Corporation purchased at par 6% bonds having a maturity value of $350,000.…

A: Interest revenue = Debt investment x interest rate x no. of years = 350,000 x 6% x 1 = $21,000

Q: Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b)…

A: Bonds: Bonds are the fixed income instrument that provide regular interest income to its holders. It…

Q: On April 1, 2021, Austere Corporation issued $320,000 of 14% bonds at 108. Each $1000 bond was sold…

A: To calculate the amount of proceeds from the bond issue that should be recorded as an increase in…

Q: On January 1.2020, Sarasota Company issued 10-year. S1810.o00 face value, 6 bonds, at par. Each $100…

A: Calculation of diluted earnings per share: =[Net Income + Interest expenses after tax] / [Number of…

Q: Bruce Co. sells $1,000,000 of 12% bonds on June 1, 2020. The bonds pay  interest on June 1. The due…

A: If the coupon rate is different from the bond's yield, the bond should be recognized in the books of…

Q: On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000…

A: When the bonds were converted into equity shares then the balance in Unamortized premium on bonds…

Q: urnal entry for April 1, 2021 bond conversion?

A:

Q: Crane Inc. issued $3,840,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued…

A: The following information given below : 1. Issued $3,840,000 of 10%, 10-year convertible bonds on…

Q: Assume all the bondholders voluntarily decided to convert their bonds to common shares on July 1,…

A: Convertible bonds are corporate bonds that holders can exchange for a predetermined number of the…

Q: On May 1, 2021, Coronado Industries issued $2950000 of 7% bonds at 104, which are due on April 30,…

A: Bonds are the highly secured securities which are redeemable after a certain span of time.

Q: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

A: Journal enteries on the issuance of Bonds for the organisation Western and stillworth organisation.

Q: Sheffield Inc. issued $15,200,000 of 12%, 40-year convertible bonds on November 1, 2025, at 97 plus…

A: To record transactions and maintain track of business activities, the business entities enter the…

Q: Windsor Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…

A: The following information given in the question: 1.  Issued $3,840,000 of 11%, 10-year convertible…

Q: Instructions: 1. Prepare the journal entry at the date of the bond purchase. 2. Prepare the first 3…

A: Bond :—  A bond is loan from an investor to a borrower such as a company or government.  It's…

Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…

A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000     Fair market value of bonds ($2000000 *…

Q: On May 1, 2021, Swifty Corporation issued $1410000 of 8% bonds at 104, which are due on April 30,…

A: Proceeds from the issue of the bonds at 104%        = ($1410000 × 104%)         = $1466400…

Q: Record entry to adjust the bonds to their fair value for presentation in the December 31, 2024,…

A: Bonds are high-security debt instruments that give an organization the ability to acquire money and…

Q: On January 1, 2019, Yellow Company issued its P3,000,000, 8%, 5-year bonds that resulted in a bond…

A: Share Premium: The Securities Premium is a provision of the Company Law that applies to the issuance…

Q: On July 1, 2025, Crane Corporation issued $2,500,000 of 9% bonds payable in 20 years. The bonds…

A: Stock Warrants -Stock warrants are options granted to investors by a company that trades on an…

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a…

A: The book value method is a method for recording the conversion of a bond into stock. To put it in…

Q: s convertible into 35 common shares, which are currently trading at $34 per share.  Similar bonds…

A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants for O $60672. O $63600. O…

A: Bonds are fixed-income securities that reflect investor loans to borrowers (typically corporate or…

Q: On April 1, 2021, ABC Corporation issued $340,000 of 15% bonds at 107. Each $1,000 bond was sold…

A: Equity - Stock warrants = No. of bonds x No.of detachable stock warrant x Market value of each…

Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: . Compute for the issue price of the bonds on January 1, 2019. 2. Compute for the bonds outstanding…

A: 1. There was no need of interest calculation. So, it's ignored.  2. Bonds are retired before…

Q: On December 1, 2017, Cone Company issued its 10%, $550,000 face value bonds for $640,000, plus…

A: Bond redemption is the process of repaying the principal amount of a bond to its bondholders upon…

Q: On January 1, 2021, Rapid Airlines issued $275 million of its 10% bonds for $254 million. The bonds…

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

Q: (a) April 1, 2020: issuance of the bonds. (b) October 1, 2020: payment of semiannual interest. (c)…

A: Working Notes:1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…

Q: Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had…

A: Bonds is a financial instrument which is used to generate cash it has a period of one year or more…

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.