On November 1, 2022, Dayrit Corporation purchased P800,000 face value, 10-year, 8% term bonds dated October 1, 2022 for P700,000 to yield 10% plus accrued interest. Interest is receivable every April 1 and October 1.  What amount should Dayrit report as interest receivable in its December 31, 2022 balance sheet?

Q: 21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000…

A: Given: Face value = P5,000,000 Price = 99% Nominal rate = 10% Issue cost = P150,000

Q: < On December 31, 2024, when the market interest rate is 12%, McCann Realty issues $900,000 of 13 25…

A: The company issues bonds when it wants to raise debts. The company makes the cash payment for…

Q: On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on…

A:

Q: On January 1, 2024, Oriole Co. sold 12% bonds with a face value of $2650000. The bonds mature in…

A: Face value $    2,650,000Coupon rate12.00%per yearEffective rate10.00%per yearCarrying value as on…

Q: On January 1, 2024, Baddour, Incorporated, issued 10%, 12-year bonds with a face amount of $163…

A: Bonds refer to the financial instruments that are issued by financial institutions and the…

Q: Ivanhoe Home Supply Company received proceeds of $627000 on 10-year, 7% bonds issued on January 1,…

A: Introduction: A bondholder is a person who invests in or owns debt instruments, which are typically…

Q: $25050000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and…

A: The cost of borrowing money or utilizing credit, represented as interest costs, is the compensation…

Q: 5. Queens Company issues $1M of 6%, 20-year bonds payable on 3/1/2024, which are sold at a price of…

A: The discount on bonds arises when the market offers higher interest earnings than the bonds. The…

Q: On January 2, 2020, Carla Corporation issued $1,200,000 of 10% bonds at 96 due December 31, 2029.…

A: The loss on redemption of the bond payable is recorded when the amount paid for such redemption is…

Q: MCK Inc. purchased on January 1, 2021, $600.000. 6% bonds of Aguirre Co. for $536,621. The bonds…

A: When the issue price of a bond is lower than the face value then, it is called to be issued…

Q: NY Fitness Company issued $10,000,000, 5-year, 7% callable bond on January 1, 2018 when the market…

A: Bond: It is  the  loan paid  by an investor to a borrower. Bonds are used by companies. Interest is…

Q: On January 1, 2020, Dennis Company issued its 9% P9,000,000 face value bonds, which matures on…

A: One of the sources used by the business entity to manage the fund's requirement is to raise the…

Q: On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying…

A: Bonds are the debt instruments that corporations generally issue to raise money, The government…

Q: 21.Refer to the information in Question No. 20. How much is the interest income for the year 2022?…

A: This post has several questions. Q21 has been answered below:

Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Solution: When bonds are redeemed before maturity date, difference between carrying value and…

Q: Ivanhoe Company issues $24300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

Q: The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The…

A: The bond is purchased in order to earn a regular fixed interest with low risk. Bonds are issued by…

Q: Calculate the capitalization interest rate.

A: Capitalization rate is measured by the company which is the flat over applicable on all debts of…

Q: Cullumber Corporation issues $512,000 of 9%, 5-year bonds on January 1, 2022, at 105. Assuming that…

A: Under the straight line method of premium amortization total value of amortization is distributed…

Q: On Mar. 1, 2022, Top Company issued P 700,000 of 10% bonds to yield 8%. Interest is payable…

A: Issue price of bonds will be present value of maturity &amp; interest annuity at yield rate.

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

A: An income statement helps in analyzing where to increase the revenue and decrease the cost to…

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: Sunland Home Supply Company received proceeds of $762000 on 10-year, 9% bonds issued on January 1,…

A: A firm or group may issue bonds payable as a form of long-term debt to raise capital from investors.…

Q: On January 1, 2019, Bee Corp. issued 8-year bonds with a principal value of $3,400,000 and a stated…

A: When the stated rate of interest of 8% is less than the market rate of interest of 10%, the bonds…

Q: 12A. On December 31, 2025, when the market interest rate is 14%, Arnold Corporation issues $150,000…

A: The information given are as follows:Market Rate of interest per semi-annual period = 14%/2 = 7%No.…

Q: 16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was…

A: The bonds might be issued at a premium or a discount. Bonds are issued at a premium when the cash…

Q: Pharoah Home Supply Company received proceeds of $744000 on 10-year, 8% bonds issued on January 1,…

A: A firm or group may issue bonds payable as a form of long-term debt to raise capital from investors.…

Q: On January 1, 2025, Larkspur Corporation issued $560,000 of 7% bonds, due in 10 years. The bonds…

A: When the bonds are issued at less than their face value, it is said that the bonds are issued at…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: Crane Company issues $25300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

Q: Chicken Wings company issued P1 million face value bonds for P1,032,880 on January 2, 2022, a price…

A: Interest expense = issue price of bond ×yield

Q: A company issues $255 5.8%, 20 year bonds to yield 6% on January 1, 2024. Interest is paid on June…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value at the…

Q: de, Inc. issued $758,000 of bonds on December 15, 2022, when the market rate of interest was 6%. The…

A: Here are the journal entries to record the issuance of the bonds on December 15, 2022, and the…

Q: bonds on January 2, 2022 for $540,000. In addition, the company incurred $50,000 in bond issue…

A: To calculate the correct amount of bond interest expense to be recorded on December 31, 2022, we…

Q: On January 1, 2022, Davison Corp. issues $500,000 of 9% 15-year bonds that pay interest year. Bonds…

A: Issue price of bonds would be present value of interest annuity &amp; maturity amount at market rate…

Q: nds on July n July 1, 2021

A: a. Price of bond = [Coupon payment x PVIFA7%,30] + [Face value x PVIF7%,30] = [700000 x 6% x…

Q: Wildhorse Ltd. issued $0.94 million of 5-year, 4% bonds dated May 1, 2024, for $983,344 when the…

A: Bonds are long term source of finance for companies and bonds are paid annual coupon and par value…

Q: 1. On June 1, 2019, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,300. The…

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

Q: Ayayai Company issues $ 17300000, 9.80%, 20-year bonds to yield 10% on January 1,2025. Interest is…

A:

Q: On 1 January 2022, Belize Social Security Board (SSB) issued 10% bonds with a face value of…

A: Bond interest expense is calculated on beginning carrying value of the bonds for every payment…

Q: Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: 2. What total amount should be reported as current liabilities on December 31, 2021? Sunflower…

A: Current liabilities are short-term obligations of the company. Those obligations which are to be…

Q: On January​ 1, 2023, Anthony Corporation issued $500,000 of 6%, 5 - year bonds at 99, with interest…

A: The bonds are the Financial instruments that are issued to raise the money from the market or…

Q: n June 30, 2022 Maxim Corp purchased 7%, $100,000 10 year bonds. Interest is paid annually on Dec…

A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…

Q: On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced…

A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

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.