Bocelli Co. purchased $24,000 of 5%, 10-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $12,000 of the Sanz County bonds at 101 plus $50 accrued interest less a $135 brokerage commission. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year. a.  Provide the journal entry for the purchase of the bonds on May 11 plus 72 days of accrued interest. Year 1 May 11   fill in the blank cc1015feb02d00e_2 fill in the blank cc1015feb02d00e_3     fill in the blank cc1015feb02d00e_5 fill in the blank cc1015feb02d00e_6     fill in the blank cc1015feb02d00e_8 fill in the blank cc1015feb02d00e_9 b.  Provide the journal entry for the semiannual interest on October 1. Year 1 Oct. 1   fill in the blank d9f0c00a9fc5f87_2 fill in the blank d9f0c00a9fc5f87_3     fill in the blank d9f0c00a9fc5f87_5 fill in the blank d9f0c00a9fc5f87_6     fill in the blank d9f0c00a9fc5f87_8 fill in the blank d9f0c00a9fc5f87_9 c.  Provide the journal entry for the sale of the bonds on October 31. Year 1 Oct. 31   fill in the blank 4e2c7900b07902b_2 fill in the blank 4e2c7900b07902b_3     fill in the blank 4e2c7900b07902b_5 fill in the blank 4e2c7900b07902b_6     fill in the blank 4e2c7900b07902b_8 fill in the blank 4e2c7900b07902b_9     fill in the blank 4e2c7900b07902b_11 fill in the blank 4e2c7900b07902b_12 d.  Provide the adjusting entry for accrued interest of $100 on December 31, Year 1. Year 1 Dec. 31   fill in the blank d50f8900afb3ff8_2         fill in the blank d50f8900afb3ff8_4

Q: Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31,…

A: a. Account Titles and Explanation Debit Credit Investment in trading securities $50,000…

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

A: Journal entry The basic process of accounting work is to journalize the required transaction into…

Q: On April 30, Kate Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term…

A: Bond Issued = 7,000 Bond issue cost = ₱125,000 Face Value = ₱1,000 Coupon rate = 15% Time period = 5…

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: Paulina, Incorporated, owns 80 percent of Southport Company. On January 1, 2021, Paulina acquires…

A: Intra-entity transactions are those transactions that take place within the companies. It is used to…

Q: Demopoulos Company acquired $151,200 of Marimar Co., 8% bonds on May 1 at their face amount.…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with a face…

A: SOLUTION- BOND  IS A FIXED OBLIGATION TO PAY  THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

Q: Landis Company purchased $3,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with…

A: Other comprehensive income=Fair value of bonds-(Sales value of bonds-Amortized premiums)

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

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: An investor company purchased $716,000 of 4% bonds from the investee company on January 1, 2020,…

A: When the corporation buys securities with the intention to resell them or not hold them till…

Q: Linton Ltd. purchased 70 Horner AG 9%, 10-year, €1,000 bonds on January 1, 2022, for €70,000. The…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

Q: Several years ago Brant, Inc., sold $780,000 in bonds to the public. Annual cash interest of 9…

A: Prepare Consolidation Entry B to account for these bonds on December 31, 2019

Q: On January 1, 2022, Kristine Company purchased 12% bonds with face amount of P5,000,000 for…

A: Bonds- A bond is a fixed-income tool that represents a loan made by a financier to a borrower…

Q: On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: Several years ago Brant, Inc., sold $800,000 in bonds to the public. Annual cash interest of 8…

A: Journal Entry - It is record of every business transactions whether it is economic or non economic…

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: On April 30, CHIA-SEED Company issued 7,000 of 15% P1,000 bonds at 95. The bonds have a five- year…

A: Y/2 = (I + (F - NI)/n)/((F + P)/2)

Q: Keyser Company acquired $3,514,000 face value, 9% bonds as an available-for-sale investment on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 2022,…

A: Profits on readily available-for-sale securities with easily determined fair values should be…

Q: SEED Company

A: At The Chia Co we tend to area unit captivated with positive plant primarily based nutrition. Our…

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A: Introduction:- Journal entry means as follows:- Journal entry is used to record business…

Q: Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the…

A:

Q: Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: When the sale price of bonds is greater than the book value of the bonds, then it would result in…

Q: On October 1, Dennis Company purchased ₱200,000 face value, 12% bonds at 98 plus accrued interest…

A: Bonds are a form of loan or debt, that is being issued by the business. Regular interest payments…

Q: Darcy Company is an 80%-owned subsidiary of Kraco Industries. Darcy Company issued 10-year, 8% bonds…

A:

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

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On April 30, Petrol Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term…

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Q: Carow Corporation purchased, as a held-for-collection investment, $60,000 of the 8%, 5-year bonds of…

A: No. Account Titles and explanation Debit Credit a. Investment - Held-to-maturity…

Q: On July 1, Year 1, XYZ Corporation purchased as a long-term investment a $2 million face amount ABC…

A: The question is based on the concept of accounting of income from held to maturity securities. In…

Q: Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the…

A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…

Q: Blossom Company purchased $1180000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

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: Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with…

A: Workings: Using the effective interest method:

Q: Linco Industries is a 90%- owned subsidiary of Sharp Incorporated. On January 1, 2015, Linco issued…

A: Prepare eliminations and adjustments as explained: Result:

Q: On April 30, CHIA-SEED Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year…

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Q: Bocelli Co. purchased $162,000 of 7%, 20-year Sanz County bonds on May 11, Year 1, directly from the…

A:

Q: Gonzalez Company acquired $200,000 of Walker Co., 6% bonds on May 1 at their face amount. Interest…

A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…

Q: Landis Co. purchased €500,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2021, with…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Gillooly Co. purchased $78,000 of 7%, 10-year Lumpkin County bonds on May 11, Year 1, directly from…

A: Journal entries are entered in account books to record each and every financial transaction related…

Q: On January 1, 2014, Dunbar Corporation, an 85%-owned subsidiary of Garfield Industries, received…

A:

Q: CHIA-SEED Company

A: At The Chia Co we tend to area unit captivated with positive plant primarily based nutrition. Our…

Q: On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: Cullumber Company purchased $3050000 of 9%, 5-year bonds from Vaughn, Inc. on January 1, 2021, with…

A: Bonds can be define as an instrument which most commonly used by corporate entities and government…

Q: Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin County bonds on May 11, Year 1, directly from…

A: SOLUTION WORKING NOTE- A- 360000 *6 % 40/360 = 2400. B- 360000*6%*6/12 = 10800. C-1 90000*98%…

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

A: Early Extinguishment debt When the debt obligations are retired before its scheduled maturity date,…

Q: On February 1, Hansen Company purchased $108,000 of 5%, 15-year Knight Company bonds at their face…

A: Interest received july 1=108,000×5%×612=$2,700

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.