Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Q: Give entries through December 1, 2022. Prepare a bond amortization schedule using the…

A: The effective interest method is the method through which the premium or the discount which has been…

Q: On January 1, 2021, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable…

A: The amortization schedule is prepared to record the interest payment, interest expense and carrying…

Q: On January 1, 2018, Quinton Corporation issued 8% bonds with a face value of $100,000. The bonds are…

A:

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…

A:

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds’ annual…

A: Bond is a financial instrument which are issued by large organization to raise the fund. It is…

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: Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2.…

A: Under the Straight line method, a Bond premium or discount is amortized equally over the bond term…

Q: (b) Bonita Co. sells $431,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

A: Bond Accounting refers to the recording of bond related transactions i.e. issuance of bond at par,…

Q: Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

A: Interest payment on June 30, 2021 = Face value of bonds x rate of interest x 6/12 = $70,000 x 7% x…

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on…

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

Q: On January 1, 2021, ABC Company issued a $500,000, 8%, 10-year bond at the yield of 6%. Interest is…

A: Debt instruments that a firm issues to investors are called bonds. It is equivalent to the…

Q: Bryan Company issued $780,000 of 8% face value bonds on January 1, 2019, for $763,800. The bonds are…

A:

Q: Vaughn Co. sells $409,000 of 12% bonds on June 1, 2025. The

A: Calculate cash proceeds on issuance:Maturity value of bonds payable = FV$409,000Interest Rate…

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

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: Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $59,000 for $59,000 on January 1,…

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

Q: Bramble Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are…

A:

Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Calculate the present value of the principal amount as shown below:

Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…

A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…

A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

Q: (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization…

A: Bonds are an agreement between an investor and investee.

Q: Devon Harris Company sells 9% bonds having a maturity value of $2,984,000 for $2,661,311. The bonds…

A: Effective interest rate refers to the income that an individual receives by holding onto the bond…

Q: LEXINGTON INN CORPORATION Trial Balance December 31, 2022 Debit 1. 2. 3. 4. Account Cash Accounts…

A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: On Dec. 31, 2020, Zallag company issues callable bonds that havea $700,000 par value, mature in 10…

A: Bonds are the amount company borrowed from the investors for a fixed income and for a period of…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2019, with a $250,000 par value. The…

A: It is a fixed income instrument that represents a loan made by an investor to a borrower ( corporate…

Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…

Q: Nash Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Bonds represent debts issued by the firm to meet the capital requirements. They act as a promise by…

Q: Nash Co. sells $360,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June…

A: Bonds: Bonds are the debt obligations of a business on which it requires to pay regular interest to…

Q: What is the calculation of gain on redemption?

A: summary of the information provided : bonds yield  10% bond face value = $ 400,000 bond interest…

Q: interest method for discount and premium amortization. Amortize premium or discount on interest…

A: Step 1 Bond is amortized over the actual interest and stated interest of the bond over the tenure of…

Q: Burris Corporation is authorized to issue $800,000 of 9% bonds. Interest on the bonds is payable…

A: Date Accounts Titles Debit Credit Apr-01 Cash $8,18,000     Bonds Payable   $8,00,000…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $67,000 for $73,507 on January 1,…

A: Given that, rate of interest on bonds = 7% term of the bond = 15years Face value of bonds  $67000…

Q: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: 1. Calculation for Bonds Issuance Entry  A) Discount on issue of bonds.   = Bonds Issue price-Bonds…

Q: Bridgeport Co. sells $426,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

A: There are some scenarios when the company buys back from the market the bonds which has been issued…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: On January 1, 2019, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2019.…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: Bonita Co. sells $399,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and…

A: Bond amortization is the process of allocating the premium or discounted amount to interest payments…

Q: the second interest payment. January 31, 2034 the date the principal is repaid. What would be the…

A: Scenario 1: Bonds Issued February 1, 20241. Amount Received:Face value of bonds: 80,000 * $1,000 =…

Q: Lime Co. sells $600,000 of 9% bonds on April 1, 2017. The bonds pay interest on October 1 and April…

A: Given Details $600000 Bonds of 9% p.a payable semiannually - Issued by Lime Co. Bond Face Value =…

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…

Q: On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of…

A: Journal is the book of original entry in which all the transactions relating to the business are…

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.