On January 1, Year 1, Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation for P108,600, a price that yields 5% on a stated interest rate of 7%. Interest is payable annually at December 31. The bonds investment is measured at amortized cost. Required: Give all the entries in the books of Narito Company for years 1 through years 3 as a result of foregoing.

Q: On January 1, Year 1 Naririto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION  A JOURNAL ENTRY RECORDS A BUSINESS TRANSACTION IN ACCOUNTING SYSTEM FOR AN ORGANIZATION.

Q: On

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Q: AAA Inc. purchased P400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8 percent…

A: GIVEN   AAA Inc. purchased $400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8%…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: Journal entry The basic process of accounting work is to journalize the required transaction into…

Q: On January 1, Year 1 Navara Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION  A JOURNAL IS A COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

Q: On July 1, Year 1, ABC Corp purchased 6.00% bonds having a maturity value of $100,000 for $105,079.…

A: Correct option is a. $142 Unrealized gain or loss recorded under OCI under December 31 year 1 is…

Q: Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005.…

A: Bonds are a form of liability for the business, for which regular interest payments needs to be made…

Q: On October 1, 2020, Complex Company purchased a 12% P3,000,000 face amount bond issue for P2,700,000…

A: Bonds:- A bond is considered as the written agreement between the borrower and lender, under which…

Q: On January 1, 20x1, POTENT POWERFUL Co. issued 12% bonds with face amount of P4,000,000 for…

A: The face value of the bond is 4,000,000. The coupon rate on bond is 12% and the annual coupon rate…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

A: Total amount of premium = Issue price - Face value = $1,050,000 - $1,000,000 = $50,000

Q: XYZ Corporation issues $1.000,000 of face value bonds that mature in 20 years at a discount on…

A: Interest accrued = face value of bonds x rate of interest x no. of months/12 = 1000000*6%*12/12 =…

Q: Assume that the bonds were classified as debt investments at fair value through profit or loss.…

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

Q: On January 1, Year 1 Naruto Company purchased P100,000 face value 5 year bond of Wolf Corp for…

A: Ii

Q: On January 1, Year 1, A Company purchased P500,000, 12% bonds of Erika Company for P464,882, a price…

A: Working Notes :-                                  Discount on purchase of…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

Q: On January 1 of the current year, Baker Corp. purchased $50,000 of Chocolate Inc. bonds. These bonds…

A: The Investments in bonds are held till maturity. The Investments in bond is measured at amortized…

Q: 2.On January 1, Year 1 Naruto Company purchased P100,000 face value 5 year bond of Wolf Corp for…

A:

Q: On January 1, 2022, Kindness Corp. issued 3,000 of its 5-year, P1,000 face value, 12% bonds dated…

A: The bonds are the long-term liabilities. When a company issues bonds and offers a coupon rate that…

Q: Keyser Company acquired $3,514,000 face value, 9% bonds as an available-for-sale investment on…

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

Q: On January 1, Year 1, Grow Company purchased P 1,000,000, 12% bonds of Glow Company for P 1,063,394,…

A:

Q: On January 1, Year 1 Naruto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION SCHEDULE OF BOND PREMIUM AMORTIZATION TABLE - DATE  CASH PAID  INTEREST EXPENSE  PREMIUM…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the…

A: Issue price of bonds = (face value of bonds x present value of $ 1 at market interest rate for the…

Q: Journal entry to record the second period of interest, June 30,  Matrix would record a credit to…

A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…

Q: At the beginning of the current year, Chacha Company purchased 5-year bonds with a face amount of…

A: As per the amortization method, the value of the financial instrument is recognized at present…

Q: On January 1, 20x4, Mondragon Company purchased bonds with face value of P5,000,000 at a cost of…

A: Step 1 Initial recognize   is made at transaction price which is P 4, 700,000 which is transaction…

Q: On January 1, Year 1 Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: SOLUTION- Bond: When the company needs money, the company issues fixed-income security that the…

Q: On January 1, Year 1, Narito Company purchased P100,000 face value 5-year bond of Wolf Corporation…

A: Impairment Loss Impairment can happen as a consequence of one-time or unique occurrences, such as a…

Q: On October 1, Dennis Company purchased ₱200,000 face value, 12% bonds at 98 plus accrued interest…

A: Bonds are a form of loan or debt, that is being issued by the business. Regular interest payments…

Q: On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4.…

A: Annual Interest=Issue price×Stated rate=P 800,000×8%=P 64,000

Q: n March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding accrued…

A: Answer: Bonds are the debt instruments issued by the company to the general public to raise funds…

Q: On January 1, 20x1, Kageyama Corporation issues P1,500,000 of 10% bonds at 97 due December 31, 2x10.…

A: Introduction:- A bond is a form of instrument in which the issuer (the debtor) owes the holder (the…

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: On March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On January 1, 20x6, SAM COMPANY. issued 3-year bonds with a face value of P3,000,000 for P2,850,756.…

A: The interest expense is the cost which a firm is required to pay for the amount borrowed in the form…

Q: Red & Blue Company sold bonds at 97 on an interest payment date for $500,000. Assuming thebonds…

A: Firstly we shall calculate the issue price of the bonds. Then, we shall calculate the discount on…

Q: On January 1, 2018, Arabian Company purchased serial bonds with face amount of P3,000,000 and stated…

A: A bond is a debt instrument issued by large businesses and government organizations to raise debt…

Q: On January 1, 2021, PAPASA BA AKO Company purchased 5-year bonds with face value of P8,000,000 and…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present…

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…

A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

Q: On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of…

A: Adjusting Entries- Adjusting entries refers to the entries made in the accounts at the end of the…

Q: On July 1, Year 2, San Benon Company purchased 4,000 of the P1,000 face amount, 8% bonds of Oat…

A: San Benon classifies the securities as at amortized cost. It means the interest expense will be…

Q: On January 1 of the current year, Barton Corporation issued 10%, 5-year bonds with a face value of…

A: Discount on bonds payable = $200,000 - $191,000 Discount on bonds payable = $9,000   Number of…

Q: On July 1, Year 2, MODESTA Company purchased P10 million of West Company’s 8% bonds due on July 1,…

A:

Q: On January 1, Year 1 Naririto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A:

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

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

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Bond is a debt insturment, which are issued to raise fund for the business. Bond is an interest…

Q: On January 1, 2010, Halston Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at…

A: Interest=Face amount×Interest rate2=$5,000,000×8%2=$200,000

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

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, Year 1, Tina Company purchased P500,000, 12% bonds of Erika Company for P464,882, a…

A: Working Notes :-                       Company intended to collect the principal and…

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.