Whispering Company sells 10% bonds having a maturity value of $1,410,000 for $1,308,350. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Straight-Line Method Year   Cash Paid   Interest Expense   Discount Amortized   Carrying Amount of Bonds Jan. 1, 2020   $     $     $     $   Jan. 1, 2021                 Jan. 1, 2022                 Jan. 1, 2023                 Jan. 1, 2024                 Jan. 1, 2025

Q: LRNA Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price…

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

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A: The bonds are the long-term debt instruments. The coupon rate is fixed at the time of the issue of…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Date (A) Interest payment(B)7%* face value  interest expenses(C) carrying value*8% Amortisation…

Q: On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000…

A: Solution: Interest expense for the six months ended December 31, 2019 = Issue price * 10% *6/12  =…

Q: Blue Company issued $ 396,000 of  10%,  20-year bonds on January 1, 2020, at  102. Interest is…

A: Semiannual interest payment= face value of bonds x rate of interest x no. of months/12 = $396,000 x…

Q: On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on…

A:

Q: On June 1, 2023, JetCom Inventors Inc. Issued December 1, 2023. Required: a Calculate the issue…

A: The Effective Interest Method is a common approach used to amortize the discount or premium on a…

Q: a. Jason Allen Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2025. The bonds were…

A: Bonds refer to the debt instruments issued either by the government or corporations. The bonds are…

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

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

Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…

Q: On May 1, 2018 Lila Co. sells $900,000 ,10 years, 12% bonds dated January 1, 2018 at 112.0482 plus…

A: Bonds are the debt instruments issued by a company to the general public to raise money for the…

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: Devon Harris Company sells 10% bonds having a maturity value of 2,000,000 for 1,855,816. The bonds…

A: Bonds payable is a form of long-term debt that signifies a company's responsibility to return funds…

Q: A company issues $25100000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: Carrying Amount of Bonds = Face Value of Bonds - Unamortized Balance of Discount. Discount on Bonds…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

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A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…

Q: On January 1, 2020, Dennis Company issued its 9% P9,000,000 face value bonds, which matures on…

A: One of the sources used by the business entity to manage the fund's requirement is to raise the…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

Q: Oriole Company issued $760,000, 7%, 10-year bonds on January 1, 2022, for $815,933. This price…

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

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

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

Q: Compute the issue price of the bonds of Pluto corp issues P560,000 of 9% bonds, due in 9 years, with…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

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

A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: Volunteer Inc. issued bonds with a $600,000 face value, 8% interest rate, and a 4-year term on July…

A: Given Information: Bonds issued at face value       $600,000 Amount received…

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: 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 January 1, 2018, Global Sales issued $25,000 in bonds for $29,800. These are eight-year bonds…

A: Bonds are issued by a firm in order to raise fund. Bonds are purchased by investors and they get a…

Q: Prepare journal entries for the following transactions.

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On January 1, 2019, Cranky Company issued 100, 5% stated. rate $1,000 bonds dated January 1, 2019,…

A: Bond valuation is a method for figuring out an individual bond's hypothetical fair value. Bond…

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A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…

Q: pany issues four-year bonds with a $105,000 par value on January 1, 2021, at a price of $100,950.…

A: Bonds are debt instruments which are issued to raise money from investors. Bonds may be issued at…

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

A: a.Bond Amortization table for first 4 year   Period Ending Beginning of Period Net Book Value…

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A: The question is based on the concept of Financial Accounting.

Q: a. Matthew Young Co. sold $1,890,000 of 12%, 10-year bonds at 105 on January 1, 2025. The bonds were…

A: Since you have posted multiple questions, we can only provide the solution to the first question…

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A: The bonds are issued at par when market rate is similar to coupon rate of bonds.

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

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A: The bonds are issued to raise the money from the market or investors. The bonds are issued at a…

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

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

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A: Effective interest rate: It can be defined as the interest rate on borrowings or on any financial…

Q: On March 1, 2020, Mitchell Inc. issued 60, 6%, $1,000 bonds dated March 1, 2020 for $62,626. The…

A: Bond Payables: In the financial statement, bonds payable represents the amount owing to bondholders…

Q: On June 30, 2020, the market interest rate is 6%. Burnaby Enterprises issues $525,000 of 7%, 17-year…

A: Bond carrying amount is calculated by adding the premium account balance in the previous carrying…

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

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $500,000 par value. The…

A: Since the interest is paid semi-annually, therefore the total payments, in this case, the number of…

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: Sheffield Company sells  10% bonds having a maturity value of $ 1,300,000 for $ 1,206,280. The bonds…

A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = 1,300,000 x…

Q: help

A: Bonds are described as those securities which represent the amount of debt lent to the borrower.…

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.