On January 1, 2020, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category. Instructions  a. Prepare the journal entry at the date of the bond purchase.  b. Prepare the journal entry to record the interest revenue on December 31, 2020.  c. Prepare the journal entry to record the interest received on January 1, 2021.

Q: On March 1, 2020, Sandollar Inc. issued $90,000 of bonds at 105, paying 8% cash interest…

A: Journal: Recording of a business transactions in a chronological order.   As posted multiple sub…

Q: On January 1, 2020, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for…

A: a) Journal entry at the date of the bond purchase is follows:

Q: On December 31, 2019, Spearmint, Inc, issued $450,000 of 9 percent, 3-year bonds for cash of…

A: Interest payment  on June 30,2020 = Face value of bonds x rate of interest x no. of months/12 =…

Q: On January 1, 2014, Dubai Corporation purchased 12% bonds, having a maturity value of $600,000, for…

A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…

Q: On December 31, 2019, Sumner Company held Wall Company bonds in its portfolio of trading securities.…

A: Trading securities: These are the securities purchased with the intention of disposing them within a…

Q: On January 1,2019, ABC Corporation issued a 5-year, 12%, 1,000 of the P 5,000 face value bonds with…

A: market value of bond= present value of future payments@YTM

Q: On January 1, 2019, Learned Inc. issued $105 million face amount of 20-year, 14% stated rate bonds…

A: Proceeds (Issue price) of bonds=Present value of semiannual interest payment+Present value of…

Q: On January 1, 2021, Carrow Company issued 11% bonds in the face amount of P1,000,000 that mature on…

A: Bonds are a form of loan or debt that is being taken by the business, on which regular interest…

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

A: Face value of bond $30,000.00 Coupon rate 6% Effective interest rate 10.00% Years to maturity…

Q: On July 1, 2020, Martinez Corporation purchased at par 6% bonds having a maturity value of $350,000.…

A: Interest revenue = Debt investment x interest rate x no. of years = 350,000 x 6% x 1 = $21,000

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 January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for…

A: The following journal entries are passed to show the investment in bonds.

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: Ligeville Ltd purchased 6%, 5-year bonds newly issued on January 1, 2020 for $676,452.24 having a…

A: Bonds are the debt security which is issued by corporates or the governments to collect the funds.…

Q: On January 1, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for…

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

Q: On March 1, 2020, Mitchell Inc. issued 60, 6%, $1,000 bonds dated March 1, 2020 for $62,626. The…

A: Bond Payables: In the financial statement, bonds payable represents the amount owing to bondholders…

Q: On December 31, 2020, ABC Co. had outstanding 12%, P5,000,000 face value bonds maturing on December…

A: Bond conversion:   The process of in which the changing of a bond takes into shares is said to bond…

Q: On January 1,2019, ABC Corporation issued a 5-year, 12%, 1,000 of the P 5,000 face value bonds with…

A: Carrying value of the bonds as of December 31,2020 = Present value of principal + Present value of…

Q: Prepare the journal entry at the date of the bond purchase.

A: Hello, since your question has multiple parts we will solve the first question for you. If you want…

Q: On January 1, 2020, Hi and Lois Company purchased 12% bonds having a maturity value of $300,000 for…

A: Journal entry is the process of recording business transactions for the first time in the accounting…

Q: On January 1, 2019, Salt Mine Corporation purchased at par 8% bonds having a maturity value of…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for…

A: The below journal entries are passed to show the treatment of interest revenue and premium…

Q: Xonic Corporation issued 8 million of 20 year, 8 percent bonds on April 1, 2018, at 102. Interest is…

A: a. Following is the journal entry of issuance of bonds:

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 January 1, 2020, Cullumber Company purchased 9% bonds having a maturity value of $210,000, for…

A:

Q: On March 1, 2018, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2018,…

A: Requirement 1   Determine the amount of accrued interest that was included in the proceeds received…

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: 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: Instructions On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 1, 2021, Rare Bird Ltd. purchased 15% bonds dated January 1, 2021, with a face amount of…

A: Given in the question: Face Value = $22 million Face Value = $22,000,000 Coupon Rate = 15% Market…

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: Using effective interest method, what amount of the bond discount should be amortized for the six…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

Q: On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79,…

A: Answer 1:

Q: On January 1, 2018, OCEANIC Company purchased 12% bonds, having a maturity value of P800,000, for…

A: Date of Purchase of Bonds= 01-01-2018 Maturity Value= P800000 Purchase price= P860652 Transaction…

Q: the bondholders with a  6% yield. They are dated January 1, 2020, and mature January 1, 2025, with…

A: Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.…

Q: On January 1, 2020, Flint Company purchased at par 6% bonds having a maturity value of $340,000.…

A: Journal entries refer to the recording of transactions in an appropriate way. Journal entries help…

Q: On January 1,2019, ABC Corporation issued a 5-year, 12%, 1,000 of the P 5,000 face value bonds with…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for…

A: Formula: Amortization of bond premium = Interest payment - Interest expense where, Interest payment…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

A: Solution: Face value of bond = P5,000,000 Issue price of bond = P4,695,000

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

A: Solution : Let us first note down the given information : Coupon rate of bond      =9% Market…

Q: hat is the amount of the gain on the bond redemptio

A:

Q: Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.…

A: Solution:- Preparation of journal entry as follows under:- Working notes:- Interest Revenue for 2020…

Q: On January 1, 2020, Hi and Lois Company purchased 12% bonds, having a maturity value of $300,000 for…

A: Step 1 Journal is the part of book keeping.

Q: On January 1, 2019, Kelly Corporation acquired bonds with a face value of $400,000 for $386,808.18,…

A: Part 1 Discount  on Investment = Face Value -  Issue Price          =400000 - 386808.18…

Q: On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with a face value…

A: A bond is borrowing security issued by the company by signing a bond agreement in which terms and…

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, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A:

Q: Devers Corporation issued $400,000 of 6% bonds on May 1, 2020. The bonds were dated January 1, 2020,…

A:

Q: Prepare the necessary journal entries to record the above How much is the investment in bonds on…

A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

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.