une 30 and December 31. On March 31,1989, Taylor converts $200,000 of the bonds. Both Taylor and Jones Corp. use calendar year as their fiscal year. (a) Give entries to record the conversion in the absence of a market value for th

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: On January 1 of the current year, Points Incorporated acquired a $100,000 bond originally issued by…

A: Bonds payable is a form of debt or obligation being incurred in business. There can be long term…

Q: On August 1, 2001, AS DRE acquired the bonds, paying 940,000 euros. The nominal value of the…

A: The computation is done below:

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

Q: On January 1, Splash City issues $310,000 of 7% bonds, due in 15 years, with interest payable…

A: Bonds are a form of loan or debt issued by the company, on which regular interest payments needs to…

Q: The stockholders’ equity section of Sweet Corporation appears below as of December 31, 2017. 8%…

A: Earnings per Share - Earnings per share is the income earned by the company to the shareholder's of…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…

A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…

Q: Suspect Company Issued $720,000 of 8 percent first mortgage bonds on January 1, 20X1, at 105. The…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: On January 1 of the current year, Andy Co. paid $575,000 to purchase two-year, 8%, $625,000 face…

A: Bonds are debt instruments that represent loans made to issuer and issued by the government or…

Q: On October 31, 2010, an investor bought an 8%, $1,000,000, 10-year bonds at 98. The investor was…

A: The interest which is earned through the bonds when there has been any premium or the discount…

Q: Fowler Inc. purchased $78,000 of bonds on January 1, 2021. The bonds pay interest semiannually and…

A: Lets understand the basics. Securities are mainly classified into, (1) Trading  (2) Available for…

Q: School Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds…

A: Consolidation means the merger of at least two organizations where one organizations acquire share…

Q: Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570000 on June 30, 2024. Debt issue…

A: Bonds : Bonds are source of finance from Public.There are various types of bonds issued to…

Q: =. The journal entry to record the purchase should include:

A: The journal entry for the debt investments have to be analysed as per the nature of its holding as…

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: 1. What are the Harry's cash proceeds from issuance of these bonds, presuming that the selling price…

A: As the bond's quoted rate is less than the market rate the bond will be issued in discount and the…

Q: Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 7…

A: Bonds -Bonds are financial instruments in which a buyer loans money to a business or the…

Q: On January 1, Sharp Company purchased $100,000 of Sox Company 6% bonds, at a time when the market…

A: Answer:- A journal entry is used to record a business arrangement in a corporation's accounting…

Q: Prepare the entries George should make on: а. 10-01-18. p. 12-31-18. ç, 03-01-19.

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Play Store Corporation issucd $200,000 of 9%, five-year bonds at 99 on January 1, 2000. Interest is…

A: When the bond is issued at the price lower than its par value then the bond is said to be sold at…

Q: On 10-01-18, George purchased $100,000 of 3% bonds that mature on 03-01-23 for $100,000 plus accrued…

A: Journal Entry: Record the daily transactions/ entry in the journal is called journal entry. It is…

Q: Required a. Organize the transaction data in accounts under the accounting equation for Year 2 and…

A: In an accounting equation the total asset balance must always equal the total liabilities plus…

Q: Break-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product.…

A: Compute breakeven point in units and sales revenue, as follows: Result:

Q: Several years ago Brant, Inc., sold $950,000 in bonds to the public. Annual cash interest of 8…

A: Bond One sort of long-term debt is a bond. Bonds are tradable assets that represent units of…

Q: entries

A:

Q: Harry Gryffindor is the sole shareholder of Harry's Pottery, a wholesale/retail pottery and…

A: Bonds :— It is one of the type of securities in which it pays fixed periodic interest and face value…

Q: Required: 1. Prepare the appropriate journal entries for these long-term bond investments. 2. By how…

A: Bonds represent debt securities where investors lend money to entities, such as governments or…

Q: Applegate Corporation sells $170,000, 9%, 20-year bonds for 96 on January 1. Interest is paid on…

A: Discount on bonds = Face value of bonds - issue value = $170000 - $170000*96/100 = $6,800

Q: January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is…

A: Bond is financial instrument which is used to raise funds for financial obligations. It can be…

Q: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of…

A: Given information, Face Value = P300,000 Purchase Price = P324,000 Interest rate on bonds = 12%

Q: Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The…

A: Bonds are said to be issued at premium when they are issued at a amount higher than the face value.…

Q: Soap Company issued $200,000 of 8%, 5-year bonds on January 1, 20X6. The discount on issuance was…

A: A bond is issued by the company for raising finance for the business working. It is considered a…

Q: On 1/1/yr 1 Wiley purchased $300,000 in 8% 5 year bonds when the effective interest rate was 10%.…

A: The objective of the question is to prepare journal entries for the bonds for year 1 and year 2 and…

Q: On January 1 of the current year, a company paid $200,000 cash to purchase 10%, 10-year bonds, with…

A: Journal entry shows the recording of transactions during an accounting year and every transaction…

Q: Three years ago American Insulation Corporation issued 10%, $800,000, 10-year bonds for $770,000.…

A: Calculate the discount on bond as follows: Discount on bond = face value - issue price Discount on…

Q: Landmark Corp. buys $540,000 of Schroeter Company's 7%, 5-year bonds payable, at par value on…

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

Q: On January 1, Jules Company purchased for cash, $50.000 bonds (10, $5,000 bonds) of Android…

A: When a bond is purchased at a premium then, the interest income is less than the stated interest as…

Q: al years ago Brant, Inc., sold $900,000 in bonds to the public. Annual cash interest of 9 percent…

A: Bonds -An issuer and holder enter into a written agreement known as a bond, which mandates that the…

Q: On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds…

A: Face amount of bonds = 3,300,000 Cash received = 3,300,000 Value of warrent = 132,000 Discount on…

Q: It is year 1, the White Caps Ltd.’s first year of operations. White Caps Ltd. had the following…

A: 1. Journal entry:

Q: On July 1, 2019, Salem Corporation issued $3.2 million of 10% bonds payable in 10 years. The bonds…

A: Bonds: It is an instrument or tool of indebtedness of the bond issuer to the bondholders. Regular…

Q: Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 9…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

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.