On January 1, 2020, Ironman Steel issued $800,000, 8-year bonds for $861,000. The stated rate of interest was 6% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed.

Q: Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2019, for $96,832.72 on January 1,…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is…

A: As you posted multiple sub parts in questions we are answering first three sub parts only kindly…

Q: On March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for…

A: The debtor firm must recognize the total interest cost in the year it was incurred under accrual…

Q: On July 1, 2019, Honda Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to…

A: Semiannual interest payment = face value of bonds x rate of interest x no. of months/12 = P5,000,000…

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: On January 1, 2019, Black Panther, Inc. issued P4,000,000 of 9% bonds, dated January 1 at 97.…

A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…

Q: On January 1, 2021, White Water issues $440,000 of 7% bonds, due in 10 years, with interest payable…

A: Solution: Date Particulars Debit Credit 01-Jan-21 Cash $440,000           To bonds payable…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: The bonds are to be issued at par, discount or premium depending on the market rate of bonds.

Q: ) On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for…

A: Journal entries: It is the duty of the accountant to record business economic and non economic…

Q: On January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Interest payment on December 31, 2020 = Face value of bonds x rate of interest x no. of months/12 =…

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2020, at 119.792 to yield 8%.…

A: a. Prepare journal entry for issuance of the bonds on January 1, 2020.

Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on…

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

Q: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

A: a.Bond Amortization table for first 4 year   Period Ending Beginning of Period Net Book Value…

Q: On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: solution: Date Cash Paid Interest Expense Change in Carrying value Carrying value 1-Jan-21…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A:

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: Interest expense is the outlay incurred by an entity due to borrowing of notes or issue of bonds or…

Q: On May 1, 2022, Blossom Corp. issued $820,000, 12%, 5-year bonds at face value. The bonds were dated…

A: Interest expense is the amount of expense incurred by an entity. It is paid to the bond holder in…

Q: .Kiki Inc., which closes its books on December 31, is authorized to issue $600,000 of 8%, 10-year…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Teton Corporation issued $600,000 of 7% bonds on November 1, 2020, for $644,636. The bonds were…

A: Step 1: Compute the interest payable as follows:

Q: On December 31, 2018, White Company issued $400,000 of five-year, 12% bonds payable for $430,887,…

A: Premium on bonds = Issue value - Face value = $430,887 - $400,000 = $30,887

Q: On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable…

A: Semiannual Stated interest rate=Annual rate2=9%2=4.5%

Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

A: Amortization of a bond discount refers to the writing off the bond discount over the life of bond.

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On August 31, 2021, DASHER Company issued at 104 plus accrued interest, three thousand 10% bonds…

A: Hi since you have posted a question with multiple subparts we are solving the 1st 3 subparts for…

Q: On January 1, 2021, Lh Company was authorized to issue 12% bonds with a face amount of ₱5,000,000.…

A:

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: First of all, we have the below information-Face value of bonds= $150,000Time of the bonds= 5 years…

Q: On January 1, 2020, Flounder Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds…

A: Solution: Journal Entries - JWS Corporation Date Particulars Debit Credit 1-Jan-20 Cash Dr…

Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…

Q: Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest…

A: Effective Interest rate refers to the compounded interest rate that the bond holder actually pays as…

Q: On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 103. Interest is paid…

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

Q: On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: 1. Calculation for Bonds Issuance Entry  A) Discount on issue of bonds.   = Bonds Issue price-Bonds…

Q: On January 1, 2021, PRANCER Company was authorized to issue 12% bonds with a face amount of…

A: Bond is a source of debt financing for companies. It carries a fixed rate of interest which the…

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

A: Amount received from the bond issuance = (Face value of bonds x issue price/100)  - bond issue cost…

Q: On September 1, 2021, Evansville Lumber Company issued $80 million in 20-year, 10 percent bonds…

A: Discount Amortization=Amount of bonds issued×Rate of interest×Number of monthPeriod of issuance…

Q: On January 1, 2020, PS ind issued P600,000 of 7% bonds, due in 10 years. The bonds were issued for…

A: Introduction: Journal entries are the basis of double accounting rules, which have been used for…

Q: Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid…

A: Bond is an investment security which provides a regular interest income at fixed rate to the bond…

Q: On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest…

A: SOLUTION-                                                                      JOURNAL ENTRIES…

Q: On January 1, 2020, Powell Corporation issued $600,000, 5%, 5-year bonds dated January 1, 2017, at…

A: GIVEN   On January 1, 2020, Powell Corporation issued $600,000, 5%, 5-year bonds dated January 1,…

Q: On December 31, 2018, Blue Devil Inc. issued $600,000 of 15-year, ten percent bonds payable for…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fix amount of…

Q: On January 1, 2019, North Company issued $2,000,000 of bonds with a stated rate of 10% that are due…

A:

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: State amount of interest expense reported on the income statement for 2019 as below:   The interest…

Q: On January 1, 2020, Trapp Enterprises issued 9%, 10-year bonds with a face amount of $900,000 at 96.…

A: Please find below the entries -

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: The Vaughn Company issued $330,000 of 7% bonds on January 1, 2020. The bonds are due January 1,…

A: Prepare the journal entries:     Date Accounts title and explanation Debit Credit Calculations…

Q: Prepare the journal entries to record (a) the issuance of the bonds, (b) the payment of interest and…

A: Given information is:  Value of bonds issued = $800,000 Period = 20 years Issue price of bond =…

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

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.