On January 1, 2020, Windsor Company purchased 10% bonds having a maturity value of $340,000, for $367,149.34. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Windsor Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (a)     Prepare the journal entry at the date of the bond purcha

Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…

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

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 January 1, 2020, Splish Company purchased 5% bonds, having a maturity value of $ 440,000 for $…

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

Q: Prepare the journal entry at the date of the bond purchase. (b)   Prepare the journal entries to…

A: Year Cash flow PVF @10% PV of Cash flow 2020      37,200 0.909      33,818.18 2021      37,200…

Q: On January 1, 2020, Marin Company purchased 6% bonds, having a maturity value of $550,000 for…

A: When the business model for the investment is to earn periodic income and capital gain, the…

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 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: 20, Teal Company purchased 9% bonds having a maturity value of $370,000, for $400,342.96. The bonds…

A: The amount of interest expense, interest payment, and discount or premium amortization of a bond in…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: Bond purchased: In order to obtain money from investors who are prepared to lend them money for a…

Q: effective-interest basis. Prepare the journal entry to record the interest payment and the…

A: Given that: On January 1, 2020, Swifty Company sold 11% bonds having a maturity value of $700,000…

Q: On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The…

A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of P5,000,000 for P5,500,000…

A: Investments can be done in various assets or securities. Investment in bonds is done to earn…

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: On January 1, 2020, Oriole Company purchased 12% bonds, having a maturity value of $ 310,000 for $…

A: Bonds- Bonds are those monetary securities that are issued by banks, governments, companies so as to…

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

A: Upon initial recognition, the financial liabilities shall be measured at fair value. In general, the…

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, Sweet Company purchased  12% bonds having a maturity value of $ 270,000, for $…

A: The bonds can be purchased by company as investment, on premium or discount depending on the market…

Q: On January 1, 2020, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000.…

A: No. Date Account Titles and Explanation Debit Credit a. January 1, 2020 Debt investment $300,000…

Q: On July 1, 2020, Riverbed Company purchased $3,840,000 of Duggen Company’s 8% bonds, due on July 1,…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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

A: Period Interest Payment Interest Expense Discount Amortization Bond Amortized Cost May 31, 2020…

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

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Q: On January 1, 2020, Stellar Company purchased 12% bonds, having a maturity value of $325,000 for…

A:

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, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest…

A: The provided information are: Face value = P1,200,000 Rate of interest (r) = 8% = 0.08 Yield = 10% =…

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: On December 31, 2019, Wintergreen, Inc, issued $150,000 of 7 percent, 10-year bonds at a price of…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

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

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A journal entry is used to document any commercial transaction in the accounting records of a…

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

A: We know that the current carrying value of the bond is the present value of all the cash payments to…

Q: Prepare the journal entry to record the interest payment and the amortization for 2022

A: Given that: On January 1, 2020, Swifty Company sold 11% bonds having a maturity value of $700,000…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: Interest income is described as the income which individual or an investor receives on the amount of…

Q: a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method.…

A: “Since you have posted a question with multiple subparts, we will be solving the first three…

Q: On January 1, 2023, Baker Company purchased, as an investment, 5% bonds, having a maturity value of…

A: The Baker Co. purchased 5% bonds at discount of 11,600 [150,000-138,400].  The…

Q: On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of P3,000,000, which mature on…

A: Bonds are an obligation on an entity which is to be repaid on its maturity date. These are issued…

Q: On January 1, 2020, Monty Company purchased 12% bonds, having a maturity value of $310,000 for…

A: a. Prepare the journal entry at the date of the bond purchase. b. Prepare the journal entries to…

Q: On January 1, 2020 Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on…

A: The bonds are issued on premium when market interest rate is less than the coupon rate of the bonds…

Q: What is the interest income for 2020? a. P280,000 b. P400,000 c.P248,080 d. P354,400 53. What is…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

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: On January 1. 2020, Swifty Company sold 12% bonds having a maturity vallue of $450.000 for $484,117,…

A: Solution: When stated interest rate is higher than market interest rate than bonds are issued at…

Q: On January 1, 2020, Coronado Company purchased 13% bonds, having a maturity value of $279,000 for…

A: SOLUTION - A journal entry records a business transaction in the accounting system for an…

Q: On January 1, 2020, Sandhill Company purchased 12% bonds, having a maturity value of $325,000 for…

A: ) Date General Journal Debit Credit   Jan. 1, 2020 Debt investments 349,639.81       Cash…

Q: On January 1, 2020, Cheyenne Company purchased 5% bonds, having a maturity value of $570,000 for…

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, 2019, Ron Company purchased 12% bonds with face amount of P5,000,000 for P5,380,000…

A: Face value of bond=5,000,000  Rate of interest=12% Interest Income = Rate of Interest * Face Value…

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: On January 1, 2021, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $210,000.…

A: 1. The journal entry to record the purchase of the bonds: Formulation:

Q: On June 30, 2019, King Company had outstanding 9%, P5,000,000 face value bonds maturing on June 30,…

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

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

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

A: a. Prepare the journal entry at the date of the bond issuance.

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.