The balance sheet of River Electronics Corporation as of December 31, 2023, included 13.25% bonds having a face amount of $90.4 million. The bonds had been issued in 2016 and had a remaining discount of $3.4 million at December 31, 2023. On January 1, 2024, River Electronics called the bonds before their scheduled maturity at the call price of 104.

Q: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million, dated…

A: GIVEN   On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million,…

Q: On January 1, 2013, JetNew Corp. issued $300,000 of 8%, 5-year bonds, with annual interest payments…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated…

A: Bonds Payable: A bond payable is the long-term liability shown in the balance sheet that needs to be…

Q: On January 1, 2023, Marigold Corporation purchased a newly issued $1,250,000 bond. The bond matured…

A: Bonds refer to the financial instrument issued by the bank or financial institution at a specified…

Q: When Patey Pontoons issued 10% bonds on January 1, 2024, with a face amount of $560,000, the market…

A: Net present value:Calculation used to evaluate the investment and financing decisions that involve…

Q: Schaffer Corporation issued $640,000 of 5%, 12-year bonds payable on March 31, 2022. The market…

A: Bonds payable refer to long-term debt securities issued by corporations, municipalities, or…

Q: Most Solutions, Incorporated, issued 13% bonds, dated January 1, with a face amount of $640 million…

A: Cash flow statement is one of financial statements includes three activities.Cash flow from…

Q: Bonds with a stated interest rate of 9% and a face value totaling $632,000 were issued for $657,280…

A: Bond amortization refers to the value which is paid at every period including the amount of…

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: The Bradford Company issued 12% bonds, dated January 1, with a face amount of $86 million on January…

A: Bonds meaning:- Bonds are debt securities or financial instruments issued by governments,…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of…

A:

Q: The balance sheet of Rays Corporation as of December 31, 2022, included 10.25% bonds having

A: Total Debit to p&l = Discount on issue of debentures + Premium on redemption of Debentures.

Q: On January 1, 2016, Broker Corporation issued $3,000,000 par value 12%, 10-year bonds which pay…

A: Issue Price of Bond=Present Value of Maturity amount+Maturity value of Interest payment   Present…

Q: On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds…

A: Bonds are the instrument acknowledging debt due from one party to another party on specified future…

Q: The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the liabilities…

A: Liability Section of the Classified Balance SheetNevada Harvester Corporation Balance Sheet…

Q: On January 1, 2021, Cullumber Ltd. issued bonds with a maturity value of $8,900,000 when the market…

A: The bonds refer to the debt instruments issued by corporations and government entities. When bonds…

Q: On the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond that pays…

A: The journal entries are the first step of accounting process to record the transactions in the…

Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A:

Q: Tahoe Tent Ltd. issued bonds with a par value of $803,000 on January 1, 2023. The annual contract…

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

Q: When Patey Pontoons issued 4% bonds on January 1, 2024, with a face amount of $660,000, the market…

A: To determine the price of the bonds on January 1, 2024, we can use the present value formula for…

Q: What would be the net amount of the liability Myriad would report in its balance sheet at December…

A: Bonds are issued by companies and government entities to raise the required funds for meeting the…

Q: Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on…

A: When the bonds are issued at more than their par value it means that it has been issued at the…

Q: Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30,…

A: Bonds:A fixed-income generating instrument that represents the loan given by the investor to the…

Q: On September 30, 2016, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Determine present value of annuity amount (interest).

Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

Q: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue,…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A: Journal Entries at the time of issuance of bonds: Date    Account title Debit Credit July 1.…

Q: The Bradford Company issued 12% bonds, dated January 1, with a face amount of $92 million on January…

A: Bonds are a method of raising long-term funds by a business, wherein borrower company borrows 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.