On May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of the warrants cannot be determined. Instructions a.   Prepare the entry to record the issuance of the bonds and warrants. b.   Assume the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.

Q: On July 1, 2020, Roberts Corporation issued $3,000,000 of 9% bonds payable in 20 years. The bonds…

A:

Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one…

A: Market Value of Warrants = No. of bonds x   fair value = 3,000 x $30 = $90,000 Market Value of Bonds…

Q: Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are…

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Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…

A: The process of recording financial activity for the first time in the books of accounts is known as…

Q: On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of…

A: Carrying value of bonds = $ 750590 Face value of bonds = $ 760000 Gain or loss on redemption of…

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: On April 1, 2020, CASHEW Company sold 12,000 of its ₱1,000 11%, 5-year face value bonds at 96. The…

A: Total discount on bonds issue = Face value of bonds x (100- issue price)/100 = ₱12,000,000 x (100 -…

Q: On January 1, 2019, Berlin Corporation issued $500,000 of 11.5% bonds due December 31, 2025, at 102.…

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

Q: n May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: lue of each stock purchase

A: Answer b. $489,250             Cash recd = 103% X 500 Nos X $1,000 = $515,000…

Q: On May 15, 2024, Baez Co. issued bond with detachable warrants.  At the time of the issuance, the…

A: Convertible bonds are the bonds that contain an underlying option with the bondholder that allows…

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated…

A: Solution:- Introduction:- Journal entry is the first step in the accounting process. It is used to…

Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020.   Instructions   Prepare the journal…

A: The word redemption seems to have various purposes in the financial and business world, depending on…

Q: On April 1, 2020, Waterway Company sold  17,100 of its  12%,  15-year, $1,000 face value bonds at…

A: Working Notes: 1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…

Q: On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 12% bonds with face…

A: "Since you have asked multiple question we will solve the first three sub part question for you.  If…

Q: During 2018, QQ Corporation issued at 95, 1,000 of its 8%, P5,000 bonds due in ten years. One…

A: Solution- Market price of bond= 50000* 1000 * .06 ( 60 * 10%)= 3000000 Market value of stock warrent…

Q: On May 1, 2017, Tamarisk Company issued 1,400 $1,000 bonds at 102. Each bond was issued with one…

A: Given that, Tamarisk Company issued 1,400 $1,000 bonds at 102 Each bond was issued with one…

Q: In each of the following independent cases, the company closes its books on December 31. 1.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: 1. Determine the value to be assigned to the bonds and the warrants and prepare the journal entry to…

A:

Q: On September 1, 2021, ETC Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price…

A: If the issue price of a bond exceeds its face value then the bond is said to be issued at a premium.

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

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A: Bonds represent the liabilities on which a fixed percentage of interest has to be paid over a period…

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A: Bonds are the highly secured securities which are redeemable after a certain span of time.

Q: On January 1, 2021, Rupar Retailers purchased $130,000 of Anand Company bonds at a discount of…

A: So here in this case, When bond is purchased for less than its face value of bond then bond is known…

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 May 1, 2020, Larkspur Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one…

A: Bond: It is a debt instrument issued by the companies in order to raise finance. Bonds can b traded…

Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…

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A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

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

Q: On September 1, 2020, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year,…

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

Q: In each of the following independent cases, the company closes its books on December 31. 1.…

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

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A: A bond refers to a fixed income instrument that speaks to a credit made by a speculator to a…

Q: On October 1, 2021, ABC Corporation issued, at 99 excluding accrued interest, 3,000 of its 8% 1,000…

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Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of…

A: Compare the amount paid for the bonds and book value then we get the loss To calculate book value,…

Q: On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year…

A: a. Prepare the journal entry at April 30, 2011 to record the sale of the bonds.

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A: 1.

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A: Journal entry is a recording of a financial transaction of a business with debit and credit columns…

Q: On January 1, 2021, Essence Communications issued $700,000 of its 10-year, 10% bonds for $619,711.…

A: Amount are rounded of therefore value are approximate.

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Q: On the July 1, 2021, Trials Corporation issued $17,500,000 of five-year, 12% bonds to finance its…

A: Bonds are issued to generate funds. When the contract rate of interest is more than the market rate…

Q: Prepare the corporation’s journal entry to record the reacquisition of the bonds.

A: Cash disbursements to redeem the bonds: = No. of Bonds x Redemption price Gain on the redemption of…

Q: On July 1, 2018, bondholders converted bonds of Vebbz Corporation with a face value of $90,000 into…

A: The correct option is c i.e., Common Stock -] CR $81,000; Contributed Surplus - Conversion - CR…

Q: On December 1, 2021, Bramble Corp.issued 680 of its 8%, $1.000 bonds at 104. Attached to each bond…

A: Compound financial instruments are instruments with both debt and equity component. Therefore, the…

Q: On January 1, 2020, Whispering Corporation redeemed $510,000 of bonds at 98. At the time of…

A: When the bonds are issued at premium, the premium on bonds amortised needs to be carried forward and…

Q: On May 1, 2020, Stellar Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one…

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.