Titania Co. sells $400,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end

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: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

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Q: Duval Company issues four-year bonds with a $120,000 par value on January 1, 2021, at a price of…

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

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

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Q: Provide the journal entry that Bella will make to record the second bond interest payment on…

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Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…

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

A:

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

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Q: On January 1, 2019, Calvert Company issues 11%, $100,000 face value bonds for $103,587.53, a price…

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Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

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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: Igloo Co sells $397000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June…

A:

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

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

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

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Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

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

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

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

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Q: On July 1, 2020, Center Company issued for $598,964, 10%, 20-year bonds with a face value of…

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Q: On January 1, 2019, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1,…

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Q: On June 1, 2024, Blossom Bottle Company sold $3,720,000 in long-term bonds for $3,262,833. The bonds…

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

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Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

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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 =…

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.