Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. 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 effective-interest method.

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

Q: On January 1, 2019, CupCompany purchased NoodlesCorporation, 9% bonds with a face value of…

A: Unrealized gain (loss) reported in other comprehensive income for the year 2019: Unrealized gain…

Q: On January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

Q: On January 1, 2019, REP Company purchased serial bonds with face amount of P5,000,000 and stated…

A: Total no. of installments = Total face amount / annual installment = P5,000,000 / 1,250,000  = 4

Q: On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for…

A: There are two methods of amortizing the premium or discount of bonds that are issued at a price…

Q: On January 1, 2019, Ondoy Company purchased $1,000,000, 12% bonds of Pepeng Company for $1,063, 394,…

A: The carrying value of the investment, classified as an investment at fair value through profit or…

Q: On June 1, 2019, Leni Company acquired a 5-year, 10%, P1,000,000 face value bonds for P920,000. The…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: Bramble Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are…

A:

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

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

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: Ending balance of Bond Investment = Beginning Balance + Interest Accrued at Effective rate -…

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: When bond of other entity is purchased as an investment, it can be reported on the balance sheet…

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: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A:

Q: On January 1, 2020, Barbie Company purchased 4,000 of $1,000 face value, 10% bonds of Ken Company…

A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A: Definition of interest revenue: Revenue received on lending the money is called interest revenue.…

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: Whispering Company sells 10% bonds having a maturity value of $1,410,000 for $1,308,350. The bonds…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: "Oh January 1, 2019, TYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a…

A: Answer : Option d - Answer not given

Q: On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated…

A: Purchase price of serial bond = Present value of annual interest  payments  discounted at Yeild per…

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation to yield…

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

Q: n January 1, 2020 Paradox Company purchased 9% bonds with a face amount of P4,000,000 for P3,756,000…

A: Solution: Bond Amortization Schedule Period Cash Paid Interest Expense Discoount Amortized…

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A: Given that the company follows straight line method of amortization, under this method discount on…

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

A: Workings: Sold 10 % bonds

Q: On January 1, 2020, Teal Company purchased 9% bonds having a maturity value of $370,000, for…

A: Interest receivable = face value of investment x  interest rate = 370,000 x 9% = $33300

Q: Spencer Company sells 10% bonds having a maturity value of £3,000,000 for £2,783,724. The bonds are…

A: Bonds refer to borrowing security that is issued by the company to raise funds from the market by…

Q: On July 1, 2020, Morales Corp acquired P4,000,000 face value of X Corporation bonds with a nominal…

A: Held to Maturity securities are the securities held by the entry with the intention to retain it…

Q: On January 1, 2020, Phantom Company acquires $200,000 of Spiderman Products, Inc., 9% bonds at a…

A: The held-to-maturity debt investment account is classified as a long-term investment account. The…

Q: On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1,…

A: Semiannually interest receipt = Face value of bonds x rate of interest x 6/12 months = $20,000,000 x…

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

A:

Q: Arrieta Company purchased $2,250,000 of 8% bonds of Baez Company on January 1, 2023, paying…

A: solution : given face value           =$2250000 coupon rate       =8% market rate of interest = 10 %…

Q: At the beginning of this year, MM purchased P6,000,000, 9% face amount bonds. The interest is…

A: Bond interest : P 6,000,000 x 0.09 = P 540,000 per year Every year the total payment of Bond…

Q: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

A: On 01.01.2019, QQQ company purchased bonds = P4760000 Including transaction cost = P160000 Face…

Q: of each year. Riverbed Company uses the effective-interest method to allocate unamortized discount…

A: The values and bonds are given as, 2020   $ 303,400   2023   $ 293,200 2021   $ 292,200…

Q: Ideal Living Company has 8.5 percent bonds outstanding that are paid semi-annually and has the YTM…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: b. Cheriel Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2022, for $562,500. This price…

A: A bond seems to be a fixed-income investment product that reflects an investor's debt to a borrower…

Q: On

A:

Q: On January 1, 2020, Teal Company purchased 9% bonds having a maturity value of $370,000, for…

A: Increase in assets should be debited and decrease in assets should be credited.

Q: On January 1, 2020, Hummer Company purchased 5% bonds, havinga maturity value of $500,000, for…

A: Bonds:   Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued…

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

A: Discount = Face value of bonds - Amount received = $110000-99611 = $10389 Cash received= Face value…

Q: Bramble Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are…

A: Bond Amortization is similar amortization of loan which is prepared to determine the actual interest…

Q: On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to…

A: Grana Inc. purchased 13% bond P 500,000 Yield = 10%  Duration = 5 years  Lets suppose par value bond…

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A:

Q: On January 1, 2017, Natifah Inc. acquires $500,000 of 8% bonds at a price of $552,970. The interest…

A: (2A)3 year amortization schedule Date.  Cash.         Interest.      Amor-.      Carrying 31/12…

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

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

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: Financial asset held for earning contractual cash flow and to held the asset till maturity, is…

Q: Harvey Corp. purchases 10% bonds with face values of $200,000 on January 1, 2017. The bonds are…

A: Working notes :-                                                    Purchase price…

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.