Shaq Corporation issued $10,000 of 20-year bonds on January 1, 2024. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds. Payment Cash Effective interest Increase in balance Outstanding balance                       9,080   1   400     409     9     9,089   2   400     409     9     9,098   3   400     409     9     9,107   4   400     410     10     9,117     What is the effective annual rate of interest on the bonds?

Q: DeKay Dental Supplies issued $10,000 of 20-year bonds on January 1, 2021. The bonds pay interest…

A: The bonds payable are the financial instruments for the business which are issued to raise money…

Q: Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually…

A: Original issue price of the bonds = Carrying Value of the bonds on January 1, 2021

Q: On January 1, 2024, Burton Sales issued $23,000 in bonds for $35,800. These are ten-year bonds with…

A: BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…

Q: Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually…

A: The stated annual interest rate, often known as SAR, is the return on an investment (ROI) presented…

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: The interest expense on the income statement for the year ended December 31, 2021 is:

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: Bonds with a stated interest rate of 9% and a face value totaling $626,000 were issued for $651,040…

A: BOND  Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

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: Aggies Inc. issued bonds with a $550,000 face value, 10% interest rate, and a 4-year term on July 1,…

A: Bonds may sometime issue at premium and the amount of premium is amortized over the term of bonds.…

Q: [The following information applies to the questions displayed below.] Legacy issues $325,000 of 5%,…

A: Bonds are referred to as the liabilities of the company on which a specific percentage of interest…

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: Frozen Company issues $33,600 of ten year bonds on January 1, 2020 at 108. It uses the straight line…

A: INTRODUCTION: When bonds are issued, cash is received, and bonds payable are credited. But, if a…

Q: Determine the present value of the bonds at issuance.

A: Bond valuation is the process of finding the fair value of the bond. It means to find the present…

Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…

Q: 17. Alvin Jackson Co. issued $10,000 of bonds on January 1, 2021. The bonds pay interest…

A: As per US GAAP, Interest on financial Liability is to be booked using the amortized cost method,…

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: 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: On July 1, 2022, Free Compnay issued for $438,000, 500 of its 8%, $1000 bonds. The market rate when…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

Q: Quick Lane Auto Service issued $50,000, 10-year bonds on January 1, 2021. of interest on the bonds…

A: Bonds payable are always recorded at the par value of the bonds. Discount or premium on bonds…

Q: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay Interest…

A: Bond :— It is one of the source of capital that pays periodic interest and principal amount at the…

Q: Crane Company issues $5040000, 7%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds…

A: Proceeds from bond is the Present Value of the Bond. Present value of Bond is the present value of…

Q: Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest…

A: The total interest paid on a company's payable bonds over the course of a reporting period is known…

Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…

A: Face value of bond = $ 1,900,000                             Issue price of bond = $ 1,641,812…

Q: On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest…

A: The given data in the question can be summarised as follows:The required values can be calculated…

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: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…

A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…

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.