On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Waterway Industries would be

Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…

A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…

Q: On October 1, 2020 Sunland Company issued 4%, 10-year bonds with a face value of $6110000 at 104.…

A: Interest accrued for 3 months ( From October 1st to December 31)  = Face value × interest rate ×…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

Q: Rombus corp issued P600,000, 9%, 20-year bonds on January 1, 2020, at P103. Interest is payable…

A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

Q: Volunteer Inc. issued bonds with a $600,000 face value, 8% interest rate, and a 4-year term on July…

A: Given Information: Bonds issued at face value       $600,000 Amount received…

Q: On July 1, 2023, AAA Company issued P1,198,000 of 10%, 20 year bonds with a face amount of…

A: The bonds are issued at premium when market rate is lower than coupon rate of bonds.

Q: On October 1, 2020 Sheffield Corp. issued 6%, 10-year bonds with a face value of $8010000 at 104.…

A: Formula: Premium on bonds payable = Cash received - Face value of bond

Q: Volunteer Inc. issued bonds with a $700,000 face value, 10% interest rate, and a 4-year term on July…

A: Annual interest payment = Face value of bonds x rate of interest x Year = $700,000 x 10% = $70,000

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 October 1, 2020 Concord Corporation issued 5%, 10-year bonds with a face value of $7930000 at…

A: On 01.10.2020, Concord corporation issued 10 year bonds with face value = $7930000 Issued price per…

Q: On January 1, 2019, Hackman Corporation issued $1,350,000 face value 8% bonds dated January 1, 2019,…

A: WORKING : PREMIUM ON BONDS PAYABLE = $1,366,900 - $1,350,000 = $16,900   JOURNAL ENTRY FOR ISSUANCE…

Q: On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Interest payment = Face value of bonds x rate of interest x time = $100 million x 6% = $6 million

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

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

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

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

Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…

A: a.

Q: Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1,…

A: The accrued interest is the current liabilities for the business, which is due for payment but not…

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: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

Q: On January 1, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is…

A: Bonds- These are the debts of a company on which interest is payable after a fixed interval i.e.…

Q: Volunteer Inc. issued bonds with a $650,000 face value, 12% interest rate, and a 4-year term on July…

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

Q: On August 1, 2022, Bridgeport Corp. issued $483,600, 7%, 10-year bonds at face value. Interest is…

A: given that, Bridgeport Corp. issued bonds worth $483600 Rate of interest = 7% life of bond = 10…

Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Volunteer Inc. issued bonds with a $550,000 face value, 12% interest rate, and a 4-year term on July…

A: Interest expense= Bond face value* Interest rate = $ 550000*12% = $ 66000 Premium= $ 600000-$550000=…

Q: Blue Corporation issued a 10 year bonds on January 1, 2019. Costs associated with the bond issuance…

A: Amount amortize on December 31, 2019 =  Total bonds issue cost / Bonds duration in year = P1,…

Q: A. July 1, 2020: entry to record issuing the bonds. B. June 30, 2021: entry to record payment of…

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

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: Novak corp. Issued $417,000,11% 15 year bonds on december  31,2021 for $404,490.interest  is payable…

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

Q: On January 1, 2020, Trapp Enterprises issued 9%, 10-year bonds with a face amount of $900,000 at 96.…

A: Please find below the entries -

Q: On April 1, 2019, Ellison Co. issued 4-year, 7%, $100,000 face value bonds. The bonds were issued at…

A:

Q: For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7%…

A: Solution Journal is the company's primary book in which all business transactions are recorded…

Q: On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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.