prepare the journal entry to record the sale of these bonds on January 1, 2022. Crane Company issues $2, 000, 000, 10 year , 6% bonds at 95, with interest payable each January 1.

Q: The Maria Miller Company issued $480,000 of 10%  20 yr bonds on January 1, 2025 at 103. Interest is…

A: A Bond is a fixed income that is made by investors, debtholders, or creditors to borrowers used by…

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: Price Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the…

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

Q: Sweetwood Company issues $5,000,000, 10-year, 9% bonds at 96, with interest payable annually on…

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

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

A: Bonds are issued at a face value of $864,000.

Q: Volunteer Inc. issued bonds with a $500,000 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 1 years = $500000 x 10% x 1 =…

Q: On January 1, 2021, Focus Corporation issued $600,000, 6%, 5-year bonds at face value. Interest is…

A: a)

Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Under straight line method, the premium or discount is amortized with equal amounts. The bonds are…

Q: Randle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay…

A: Bond is a debt security which carries a fixed interest rate. The fixed interest rate is known as…

Q: Pharoah Company issues $280,000, 20-year, 7% bonds at 102. Prepare the journal entry to record the…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is…

A: When the bonds are issued then cash will receive so cash account would be debited and bond payable…

Q: Pogden Company issued a $700,000​, 12%​, ten​-year bond payable at face value on January​ 1, 2024.…

A: Interest payment on July​ 1, 2024 = Face value of bonds x rate of interest x 6/12 = $700,000 x 12% x…

Q: Prepare the journal entry to record the payment of interest on August 1, 2023.

A: Interest Expense/Payable = Principal x Interest x Period

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: Xonic Corporation issued $7.5 million of 20-year, 8 percent bonds on April 1, 2021, at 102. Interest…

A: Bonds Payable: Bonds payable is the source of finance for the company, when a company needs funds…

Q: Flamingo Inc. issued $2,000,000, 5%, 5-year bonds on January 1, 2019, at 104. Interest is payable…

A: Bonds: Bonds are the long-term promissory notes that are issued by a company while borrowing money…

Q: On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

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: Oriole Inc. issues $380,000, 10-year, 8% bonds at 97. Prepare the journal entry to record the sale…

A: Cash received from sale of bond = $380,000 x 97% = 368,600

Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

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

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: Blossom Company issues $2.10 million, 10-year, 7% bonds at 97, with interest payable each January 1.…

A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $2100000*97/100 = $2037000

Q: Sheridan Inc. issues $5,000,000, 5-year, 10% bonds at 101, with interest payable annually on January…

A: Journal entry: A journal entry is one of the financial statements which is used to record day-to-day…

Q: On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest…

A: SOLUTION-                                                                      JOURNAL ENTRIES…

Q: Marigold Corp. issued 3, 300 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. interest…

A: A bond is a kind of debt investment where a buyer lends money to an association(  generally a  pot…

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 August 1, 2027, Concord Corporation issued $500,400,9%, 10-year bonds at face value. Interest is…

A: The bonds are reported as the long-term liabilities in the balance sheet. The accrued interest is…

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

A:

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.