Journalize the payment of bond interest on January 1, 2021. b. Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 2021. c. Assume that on January 1, 2022, after paying interest, Colaw calls bonds having a face value of €1,200,000. The call price is 101. Record the redemption of the bonds.

Q: On January 1, 2021, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:

Q: CHINA Corporation, on January 1, 2021, issued 30,000, 10%, P100 bonds for P2,900,305. Principal…

A: As per effective interest method, the amount of interest expense correlates with the carrying value…

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: Take me to the text On October 1, 2020, Robby Company issued $251,000 worth of bonds at par, with…

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

Q: On January 1, 2019, Fri Company issued P4,000,000 maturity value, 12% bonds for P4,000,000 cash. The…

A: Accrued interest payable is one of the liability of the business, which needs to be paid or settled.…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $50,000 and a stated interest…

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

Q: Auerbach Inc. Issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Bonds are a form of debt or liability for the business, on which regular interest payments also…

Q: Presented below are selected transactions on the books of Simonson Corporation. May 1, 2020 000…

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

Q: On January 1, 2021, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $78,000 for…

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

Q: In the statement of financial position of Leblanc Company as of December 31, 2020, the following…

A: Redemption of the bonds = Face value of Bonds Payable x Redemption value / 100 = P1,000,000 x 98/100…

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

Q: Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: Requirement 1:

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: On April 1, 2021, ORANGE Inc. issued at 97 including accrued interest, 2,000 of its 10%,₱1,000…

A: Accrued interest on bonds = face value of bonds x rate of interest x no. of months/12 =…

Q: On January 1, 2021, Mawi Co. issued 1,000, P4,000, 12%, 3 years bonds for P4,198,948. Principal is…

A: The question is based on  concept of valuation of bond , value of bond is calculated as discounted…

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Net issue price = (Face value of bonds x issue price/100) - Bonds issue cost = (₱5,000,000 x…

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 2030. The…

A: Solution: Bond Amortization Schedule (Partial) Period Cash Paid Interest Expense Discoount…

Q: On January 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on…

A: Discount on bonds payable = Par value of bonds - Issue price of bonds Interest expense = Issue price…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $230,000 and a stated…

A: Given, Effective interest rate = 5% Therefore, Interest expense to be charged to Profit and loss…

Q: On January 1, 2021, LACEA COMPANY issued 7% term bonds with a face amount of P1,000,000 due January…

A:

Q: On January 1, 2019, Asus Company issued P4,000,000 maturity value, 12% bonds for P4,000,000 cash.…

A: Accrued interest payable = Face value × coupon rate

Q: On Dec. 31, 2020, Zallag company issues callable bonds that havea $700,000 par value, mature in 10…

A: Bonds are the amount company borrowed from the investors for a fixed income and for a period of…

Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…

Q: On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which…

A: Working note: Computation of issue price of bonds, Discount, par value of bond:

Q: On January 1, 2021, Solo Inc. issued 1,000 of its 8%, $1,000 bonds at 98. Interest is payable…

A: In this question we have been asked to calculate the carrying value of the bond, for which we have…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Annual interest payment = Face value of the bonds x rate of interest x no. of months /12 =…

Q: On January 1, 2021, an investor paid OR291, 000 for bonds with a principal amount of OR300,000. The…

A: The interest income refers to the amount earned by the company on the amount lent aside from the…

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 1, 2030.…

A: Date  Account Titles & Explanation   Debit   Credit  January 1, 2020  Cash   P18,78,000…

Q: On October 1, 2020, Shane Company issued 5,000 12% bonds with face amount of P1,000 per bond at 110.…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…

Q: On January 1, 2021, GLITTER Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Half year coupon rate=10%2=5%

Q: On March 1, 2021, Patriot Company issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…

A: Formula: Cash received on issue of bonds = Face value of bond x Issue rate of bonds

Q: Mara Company reported the following accounts on December 31,2021: Premium on bonds payable 50,000…

A: Bond refunding refers to when higher-cost bonds are paid off with debt that has a lower net cost to…

Q: On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that annually on December 31st…

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

Q: Bombay Corporation issued 8% bonds on January 1, 2021, with a face value of $700,000, the market…

A: Bond price is determined by present worth of future cash flows from the bond. When the coupon rate…

Q: On November 1, 2020, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1,…

A: Accrued Interest: It is the amount of interest on a loan  or a financial obligation which  has been…

Q: JR Company showed the following balances in connection with its noncurrent liabilities on December…

A: Bond Payable: Bonds payable are the long term debt  ,the amount owed to bond holders by the issuer…

Q: On January 2, 2021, YELLOW Co. issued 9% bonds in the amount of ₱1,000,000 which mature on January…

A: Solution: Bond Issue price = P939,000 Amount of interest expense for the year ended Dec 31, 2021 =…

Q: MAUNLAD Co., issued 12%, P1,000,000, 3-year bonds for P1,103,084 amount on January 1, 2021.…

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

Q: On January 1, 2021, Solo Inc. issued 1,300 of its 8%, $1,000 bonds at 97.7. Interest is payable…

A: The carrying value of the bond as on December 31, 2021 = Net Proceeds + First year discount…

Q: Show your solution in good accounting form On April 1, 2021, ORANGE Inc. issued at 97 including…

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

Q: XYZ company issues R$100,000 in bonds dated January 1, 2020, due in five years with 9 percent…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: On December 31, 2020, Reyes Company issued P2,000,000, 12% serial bonds to be repaid in the amount…

A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = P2,000,000 x…

Q: On May 1, 2019, Ramden Company issues 13% bonds with a face value of $2 million. The bond contract…

A:

Q: On April 1, 2019, Ellison Co. issued 4-year, 7%, $100,000 face value bonds. The bonds were issued at…

A:

Q: Compute the December 31, 2020, amount of equity. Compute the debt to assets ratio at December 31,…

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

Q: Mara Company reported the following accounts on December 31, 2021: 50,000 180,000 Premium on bonds…

A: Introduction Bonds are investment securities that is issued by company and in which investor invest…

Q: On January 1, 2021, Minorka Company issued a 5-year, P3,000,000, 17% bonds. The effective interest…

A: The bond price for the buying of the bonds is the price after paying all costs. The effective…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds' annual…

A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds

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.