On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5910000 and a stated interest rate of 4%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Table values are:   Present value of 1 for 8 periods at 4%            0.731   Present value of 1 for 8 periods at 6%            0.627   Present value of 1 for 16 periods at 2%          0.728   Present value of 1 for 16 periods at 3%          0.623   Present value of annuity for 8 periods at 4%              6.733   Present value of annuity for 8 periods at 6%              6.210   Present value of annuity for 16 periods at 2%            13.578   Present value of annuity for 16 periods at 3%            12.561 The present value of the principal is $3705570. $3681930. $4302480. $4320210.

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

A: Annual interest amount = Face value of Bonds x rate of interest x no. of months / 12 = P5,000,000 x…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

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: Q1. What is the carrying value of the bonds on December 31, 2019? a. 5,306,515 b. 5,309,000 c.…

A: Under the Effective interest method, the premium on the issue of bonds shall be written off over the…

Q: On January 1, 2020, Metro Inc. issued a five-year bond with a face value of $700,000. The bond bears…

A: Discount or Premium on Bond Issue: A premium bond has a coupon rate that is greater than the market…

Q: On January 2, 2020, a calendar-year corporation sold 4% bonds with a face value of $2640000. These…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

Q: (b) Wildhorse Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2020, for $471,929. This price…

A: Bonds: Bonds are the debt instruments issued by the owner by the borrower company to its lenders.…

Q: On July 1, 2021, Glamorous Corporation issued 11% bonds in the face amount of P2,000,000 that mature…

A: Interest =  P2,000,000 × 11% = P220,000

Q: Olay Inc. issues $160,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price…

A: a. Compute the S.P. (selling price) of bonds at 10% as follows:

Q: Oriole SpA issued €400,000, 7%, 20-year bonds on January 1, 2020, for €360,727. This price resulted…

A: The financial transactions are initially recorded in the form of a journal entries.

Q: Huskey Mining Corporation issued bonds with a par value of $90,000 on January 1, 2020. The annual…

A: Discount on bonds payable is difference of par value of bond and issue price of bonds.

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A:

Q: On July 1, 2021, Jasper Inc. issued $2,000,000, 4% bonds that will mature in five years.  Interest…

A: Bonds payable: It is long-term liability for a business. It is a debt raised for using in the…

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

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

Q: On January 1, 2021, Braburt Co. sold six-year, 5% bonds with a face value of $700,000. Interest is…

A: Introduction:- A bond is a document of the bond issuer's obligation to the bondholders. Municipal…

Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…

A:

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

A: Maturity period = December 31, 2020 to December 31, 2025 = 5 years Semi annual period = 5 years x 2…

Q: On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1. Determine the amount(s) related to the bonds Baddour would report in its balance sheet at…

Q: On January 1, 2021, Sheridan Co. issued ten-year bonds with a face value of $4,500,000 and a stated…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…

A: a.

Q: Awla Limited issued $1 million of 10-year, 5% bonds on January 1, 2021, when the market interest…

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

Q: On January 1,2020, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated…

A: The present value of bond is calculated on the annual cash outflows from the bond interest and…

Q: A company is issuing $330,000 worth of 5-year bonds on August 14, 2020, bearing an interest rate of…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: vanhoe Corporation issued $390,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually…

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

Q: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

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

A: Annual interest payment = Face value of the bonds x rate of interest x no. of months /12 =…

Q: On January 2, 2015, Banno Corporation issued $1,500,000 of 10% bonds at 97 due December 31, 2024.…

A:

Q: Lassen Corporation issued ten-year term bonds on January 1, 2020, with a face value of $800,000. The…

A: Bond is an investment security with low risk and low return. A fixed rate of interest is attached…

Q: On January 1, 2020, Bonita Industries issued eight-year bonds with a face value of $5950000 and a…

A: Present value of principal = Face value of the bonds x Present value factor at market rate

Q: On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest.…

A: The bonds are issued at premium or discount depending on the market rate of interest of bonds.

Q: On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced…

A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: A bond seems to be a sort of financial instrument used by a business to borrow money. A bondholder…

Q: On January 1, 2021, GLITTER Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Half year coupon rate=10%2=5%

Q: On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is…

A: Accrued interest = Face value of bonds x rate of interest x no. of months / 12 months where, Rate of…

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

A: Carrying value of the bonds retired as of December 31, 2022 = Present value of principal + Present…

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A: Solution : Given: Face value        =4000000 Coupon rate    =16% Interest payable           =semi…

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: 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: XYZ company issues R$100,000 in bonds dated January 1, 2020, due in five years with 9 percent…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P2,000,000 due March 1,…

A: Computation of issue price of bond and discount on issue of bond

Q: On January 1, 2020, Pine Co. issued 10%, 10-year bonds with a face value of $12,000,000. The bonds…

A: Bonds payable are a form of long term debt usually issued by corporations, hospitals, and…

Q: Shaq Corporation issued $10,000 of 20-year bonds on January 1, 2024. The bonds pay interest…

A: Lets understand the basics. Effetive interest rate is a rate which company actually paying interest.…

Q: On January 1, 2021, Minorka Company issued a 5-year, P3,000,000, 17% bonds. The effective interest…

A: The bond price for the buying of the bonds is the price after paying all costs. The effective…

Q: On January 2, 2015, Monty Corporation issued $ 1,950,000 of 10% bonds at 98 due December 31, 2024.…

A: The repurchase of the securities already issued by the entity in the market is referred to as…

Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

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

Q: On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market…

A:

Q: 4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000.…

A: In this question we are require to calculate the interest expense need to record in year 2020 under…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

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.