Igloo Co. sells $397,000 of 12% bonds on June 1, 2020. THe bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. THe bonds yield 8%. On October 1, 2021 Igloo buys back $127,040 worth of bonds for $132,040 (includes accrued interest).   Prepare the journal 1 entry for the buyback on Oct 1. I know the entry to record interest expense and premium amort for   Oct 1 is Interest expense 3743          Premium on bond payable is 1339                                                     Cash 5082 I do not know the entry on Oct 1 to record the buy back of bonds

Q: On January 1, 2019, Mayleen Company issued 5,000 convertible bonds with P1,000 face value per bond.…

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Q: Titania Co. sells $400,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

A: Journal entries

Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: JOURNAL ENTRIES

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A: value=Coupon amount*PVAF(YTM,n)+Redemption value*PVIF(YTM,n)

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A: A bondholder refers to an individual who is an investor or the owner of debt securities which are…

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Q: interest inco

A:

Q: 1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2019. The bonds pay interest on September 1…

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: Shields Corporation sells $5,000,000 of 8% convertible bonds on July 1, 2014 for $5,350,000. The…

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

A:

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Q: On January 1, 2020, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds…

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Q: What is the calculation of gain on redemption?

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Q: On January 1, 2020, Kingbird Corporation purchased 325 of the $1,000 face value, 11%, 10-year bonds…

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Q: CNZ Corporation sells €348,000 of 12% bonds on April 30, 2020. The due date of the bonds is April…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…

Q: On January 1, 2021, Canada Corp. purchased bonds with a face value of P7,500,000 and a stated…

A: Purchase Price of Bond: The price of a bond is the current discounted value of the future cash flow…

Q: In each of the following independent cases, the company closes its books on December 31. 1.…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: In each of the following independent cases, the company closes its books on December 31. 1. Sanford…

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Q: On December 31, 2019, OLGA Inc. sold convertible bonds to Nuttin Corp. for $38,375,000. The bonds…

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A:

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.