On January 1, 2020, Marin Company purchased at par 7% bonds having a maturity value of $370,000. 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. (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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

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, 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 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, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104, Issuance costs amounted…

A: Face value of the bond: $250,000 Life of the bond: 10 years Issue price: $250,000 x 104/100 =…

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, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: On January 1, 2020, Nichols Company issued for $1,085,800 its 20-year, 11% bonds that have a…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

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: 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 August31,2021, DASHER Company issue dat 104 plus accrued interest, three thousand 10% bonds with…

A: Answer: The carrying value of a bond refers to the net amount between the bond’s face value plus any…

Q: pare a schedule of interest expense and bond amortization for 2020–2022.

A: Amortization of bonds refers to the process in which the carrying value of the bond is adjusted with…

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: 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, 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, 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 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 January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1,…

A: Interest payment on June 30, 2020 = Face value of bonds x rate of interest x 6/12 =2500000*9%*9/12 =…

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, 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, 2021, Surreal Manufacturing issued 690 bonds, each with a face value of $1,000, a…

A: Bonds are the liabilities to pay interest periodically and principal amount on maturity. They are…

Q: On January 1, 2020, Aspin Company purchased $1,200,000, 14% bonds of Bulldog Company for $1,381,934,…

A: If the financial asset is measured at amortized cost, on the subsequent reporting date, the…

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, 2020, Stellar Company purchased 12% bonds, having a maturity value of $325,000 for…

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

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

A:

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 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: 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: 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.