On January 1, 2020, Kingbird Corporation purchased 325 of the $1,000 face value, 11%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Kingbird purchased the bonds to yield 11%. How much did Kingbird pay for the bonds?

Q: On January 1, 2020, Fishbone corporation purchased 300 of the $1000 face value, 9%, 10 year bonds of…

A: Bonds are considered to be debt of company for which it needs to pay regular interest to the…

Q: On July 1, 2018, Zia Inc. acquired investments in bonds of Ding Co.'s 10-year 12% bonds, with face…

A: The gain on the disposal of bonds is the difference between the carrying amount of bonds and the…

Q: On January 1, 2020, Blossom Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The…

A: Under the effective interest method of amortization of discount or premium, the difference between…

Q: On January 1,2020, Jerry Conpany acquired P6,000,000 of 12% face value bonds at P5,650,500 to be…

A: Annual interest payment =face value of bonds x rate of interest x year = P6,000,000 x 12% x 1 year =…

Q: On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Under ACM bo d should  be  measured  at fairvalue after adjusting  transaction costs

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Carrying amount of bond investment = Total consideration paid - accrued interest = P910,000 - 20000…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Carrying amount of bond investment = Total consideration paid - commission - accrued interest =…

Q: What is the interest revenue reported by Giniling for the year 2019? A. P15,000 B. P18,000 C.…

A: Bond :- Bond is an instrument which is used by the Government & Companies to raise money by…

Q: On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063,…

A: The bond is an investment security which are issued by the large organisation in order to raise…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: The answer is given below:

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, 2020, Hole Company purchased 600 of $1,000 face value, 8% bonds of Lid Corp., for…

A: Given, Face value = $600,000 Issue price = $553,670   Discount on bonds payable = $600,000 -…

Q: On October 1, 2019, Kite Corporation purchased a debt security having a face value of P3,000,000…

A: Investment in debt securities is the investment in the debenture of the company which is a debt for…

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 a record of business transactions in the accounting system for an organisation.…

Q: Adam Corporation purchased 1,000 bonds of Quick Corporation in 2018 for $800 per bond and classified…

A: As per the accounting standard the securities are recorded in books two ways either as held to…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Solution: Purchase cost of bonds = Purchase price - Accrued interest = P910,000 -…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Working note: Computation of carrying amount of bonds investment on April 1, 2020:

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company…

A: The amount of interest due on bonds or debentures is known as interest receivebles. The calculation…

Q: On April 1, 2020, Purefoods Company purchased a bond for P910,000 including accrued interest and…

A: The amount by which the proceeds from the sale of investments were greater than the carrying value…

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

A: The question is multiple choice question. On January 1, 2020, RED Company purchased 12% bonds with…

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A: Definition of interest revenue: Revenue received on lending the money is called interest revenue.…

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

A: Principal amount = $335,000 (335*$1,000) Market interest rate = 11% Interest = $36,850 t = 10 years…

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

A: Bond is a low risk - low return investment instrument which provides a regular interest payment and…

Q: Tanner Co. acquired $120,000 of 6% bonds, dated July 1, on July 1, 2021 by paying $100,000. Tanner…

A: Journal:- These are prepared by the companies with debit and credit sides in order to match the…

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A: Given that the company follows straight line method of amortization, under this method discount on…

Q: On July 1, 2020, Sprakenheit Company purchased P500,000 face value Swazzeg Company 8% bonds for…

A: Bonds: Bonds are one of the main debt sources of raising funds from the public. Company issue bonds…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Interest accrued on April 1, 2020 =  face value of bonds x rate of interest x no. of months/12 =…

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

A: Bonds represent high-security financial products that allow a company to acquire money and meet…

Q: On January 1, 2020, Ayayai Corporation purchased 339 of the $1,000 face value, 9%, 10-year bonds of…

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

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: On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase…

A: The carrying value of bonds payable is calculated after making adjustment for amortized discount or…

Q: anuary 1, 2020, Splish Company purchased $300,000, 6% bonds of Cabana Co. for $313,128. The bonds…

A: Amortization is an accounting procedure that is used to reduce the market valuation of a loan or an…

Q: On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value…

A: Investment in bonds: Investment in bonds is the scenario where the company acquires bonds either at…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Bonds are purchased on 1 april 2020 at 910000 which include interest of P20,000 of three month and…

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

A: The financial instrument is recognized at fair value and any changes in their fair value are…

Q: On June 30, 2020, Kikiam Inc. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on…

A:

Q: On January 1, 2021, Golden Company acquires $400,000 of ABC Company's 10- year, 6% bonds at a price…

A: Introduction Carrying value of bond refers to face value of bond plus unamortized premium, during…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: Bond Bond is a source of finance issued by the firm to raise money. It has a fixed Interest rate…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: A bond is a financial instrument that is issued by large business entities and government bodies to…

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

A: Please find the answer to the above question below:

Q: On January 1, 2020 Chicken Wings Company purchased P3,000,000, 8% bonds of Fried Chicken Corporation…

A: Chicken Wings purchased bonds n which generated two types of return to it. First, Chicken wings…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A:

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

A: Discount = Face value of bonds - Amount received = $110000-99611 = $10389 Cash received= Face value…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Gain = Sale value - Ending fair value of bonds

Q: n January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063,…

A: Date  Interest Collected   Interest  Income Amortization  Carrying Amount  1/1/2019…

Q: On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to…

A: Grana Inc. purchased 13% bond P 500,000 Yield = 10%  Duration = 5 years  Lets suppose par value bond…

Q: On January 1, 2020, MINA Company purchased, on cash basis, debt securities for P765,540. The…

A: SOLUTION AMORTIZED COST IS THAT ACCUMULATED PORTION OF THE RECORDED COST OF A FIXED ASSETS THAT HAS…

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

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

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

A: Bond is purchased by an organisation in order to invest the surplus amount in a low risk asset. The…

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

A: On 01.01.2020, RED purchased bonds of 12% = P5500000 which includes the transaction cost. Face value…

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.