Prepare the journal entry to record the interest payment and the amortization for 2022

Q: On June 30, 2020, Ayayai Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520, a…

A: Introduction: A journal entry is a recording of a business contract in the accounting system of a…

Q: On January 1, 2025, Stellar Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were…

A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…

Q: On January 1, 2022, Bramble and Lois Company purchased 12% bonds having a maturity value of $234,000…

A: The bonds are issued or purchased either at discount or at a premium. The bond amortization table is…

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

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

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On December 31, 2018 Brown Company issued $600,000 of 15-year, 11% bonds payable for $558,706,…

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

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: f each year. Aumont Company allocates interest and unamortized discount or premium on the…

A: c.   journal entry to record the interest payment and the amortization for 2017 Date Account…

Q: On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for…

A: Journal entries: It is the duty of the accountant to record business economic and non economic…

Q: On January 1, 2020, Pearl Company purchased at par 8% bonds having a maturity value of $270,000.…

A: Journal Entry: It involves keeping the records of all financial transactions of an entity. which…

Q: On January 1, 2025, Oriole Company purchased at par 8% bonds having a maturity value of $260,000.…

A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Q: On January 1, 2025, Sage Company purchased 12% bonds having a maturity value of $284,000 for…

A: The bonds can be defined as corporate debt units and these units are the tradable assets. the…

Q: Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June…

A: The financial instrument which provides fixed interest as a return over the period of investment is…

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

A: Lets understand the basics.Premium of discount on issue of bond can be amortized using,(1) Effective…

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: On January 1, 2023, Culver Corp. purchased at par 12% bonds with a maturity value of $309,000. They…

A: Answer:- Journal entry:- A journal entry is basically the act of recording all the transactions…

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…

Q: Bonita Corporation issued $564,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: Bonds:The bond is the financial instrument that is used by the company to get the loan amount so…

Q: On June 30, 2020, Kingbird Company issued $3,120,000 face value of 15%, 20-year bonds at $3,824,160,…

A: Step 1: Introduction to Bonds Payable:Like other liability accounts, the bonds payable account has a…

Q: n Jan 1, 2020, Liezel Company issued 10% bonds in the face amount of P5,000,000 that mature on Jan…

A: Solution Given Face value 5000000 Issue price 4580000 Coupon rate 10%…

Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020.   Instructions   Prepare the journal…

A: The word redemption seems to have various purposes in the financial and business world, depending on…

Q: (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,…

A: Introduction: The effective interest technique is a standard for amortizing or discounting bonds.…

Q: On January 1, 2020, Bridgeport Company purchased 9% bonds having a maturity value of $290,000, for…

A: A bond amortization schedule is a table or spreadsheet that outlines the periodic payments and…

Q: elmania, Incorporated, issues 7%, 15-year bonds with a face amount of $64,000 for $58,467 on January…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on…

A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…

Q: The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: On January 1, 2020, Oriole Company purchased 6% bonds, having a maturity value of $620,000 for…

A: Solution A Bond represents a loan to company or government in return of this company pay a fixed…

Q: On January 1, 2020, Ayayai Company purchased 9% bonds having a maturity value of $250,000, for…

A: Bonds are debt securities issued by governments, municipalities, corporations, or other entities to…

Q: On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On January 1, 2020, Windsor Company purchased 10% bonds having a maturity value of $340,000, for…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…

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

Q: On January 1, 2020, Marin Company purchased at par 7% bonds having a maturity value of $370,000.…

A: Date Particulars Debit Credit a. Investment in 7% bonds $370,000     Cash   $370,000   (to…

Q: Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable…

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

Q: On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .…

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

Q: On January 1, 2022, Lenore Corp. purchased $400,000 of 6% bonds for $427,750, which they are…

A: Journal entries refer to the recording of business transactions in the format of debt and credit…

Q: On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

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

Q: On January 1, 2022, Bramble and Lois Company purchased 12% bonds having a maturity value of $234,000…

A: The bonds are issued or purchased either at discount or at a premium. The bond amortization table is…

Q: On January 1, 2020, Grouper Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: i need the answer quickly

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: On January 1, 2024, Chang's Company issued 10% bonds dated January 1, 2024, with a face amount of…

A: Journal entry represents the account where the company records its financial transaction at the…

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

A: Bond is a borrowing security issued by the company to raise funds from the market by making an…

Q: On January 1, 2018, for $17.4 million, Cenotaph Company purchased 8% bonds, dated January 1, 2018,…

A: Req-1       Date  Account Titles & Explanation   Debit   Credit  June 30, 2018  Cash…

Q: The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 13.25%…

A: Registered bondholders may cash in their bonds at maturity by presenting their bond certificates,…

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.