On May 1, 2021, Payne Co. issued $1,500,000 of 7% bonds at 103, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2021, the fair value of Payne's common stock was $35 per share and of the warrants was $2. On May 1, 2021, Payne should credit Paid-in Capital from Stock Warrants for

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

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

A:

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Flounder…

A: Journal entries are an act of recording transactions consisting of a debit and a credit side.

Q: On May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032.…

A: Bonds payable is a form of liabilty for the business, on which regular interest payments needs to be…

Q: On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Kingbird Corp.…

A: Particulars Debit Credit Cash a/c               Dr $26,394,000           To 6%…

Q: On July 1, 2021, after recording interest and amortization, BLUE Company converted ₱5,000,000 of its…

A: Share premium can be calculated by reducing par value of share capital and conversion expenses from…

Q: On January 1, 2021, Watermelon Company issued 3,000 of its 10%, 5-year P1,000 face value bonds with…

A: On 1st January 2021, Watermelon Company has issued 3000 10% 5 year bonds with detachable warrants.…

Q: On August 1, 2021, National Corporation issued $200,000 of 8% bonds at 99. The bonds mature in 10…

A: 1.

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

A: SOLUTION- BOND  IS A FIXED OBLIGATION TO PAY  THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

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: What is the carrying amount of the bonds as of December 31, 2022?

A: Compound financial Instrument: A Compound Financial Instrument is an instrument which exhibits the…

Q: On April 1, 2017, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: “Hey, since there are multiple questions posted, we will answer first three questions If you want…

Q: lue of each stock purchase

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

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: 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 January 1, 2018, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net…

A:

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

A:

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Nash Corp.…

A: The journal entries would be as follows:

Q: On May 1, 2020, Manny Company issued P2 million, 20-year, 10% bonds for P2,120,000. Each P1,000 bond…

A: 1. Premium on bonds payable arises when the stated rate on bond is higher than its market value 2.…

Q: On January 1, 2019, Post Malone Company issued P6,000,000 of 12% bonds payable maturing in five…

A: Share warrant refers to the document which is issued through the company under the common seal and…

Q: On January 1, 2016, Case Company issued P5,000,000 of 12% nonconvertible bonds at 103 which are due…

A: The proceeds of issue is allocated based on their relative fair value of warrants and bonds Fair…

Q: On December 31, 2020, Green Inc. issued of its 8%, 10-year, P1,000 face value bonds with detachable…

A: P 120,000 Explanation:

Q: On May 1, 2021, Coronado Industries issued $2950000 of 7% bonds at 104, which are due on April 30,…

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

Q: On April 1, 2020, Cat 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 December 31, 2022, Two Company issued 5,000 of its 12%, 10-year P1,000 face value bonds with…

A: Here discuss about the details of issuance of Bod with detachable warrant and its calculation which…

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

A: Bond Payable Bond Payable is the instrument which are issued by the federal authority which is used…

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

A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000     Fair market value of bonds ($2000000 *…

Q: On January 1, 2022, A company issued 1,000 of its January 1, 2017, 8%, 10 year, P1,000 face value…

A:

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Ivanhoe Corp.…

A: Convertible Debentures: A debenture holder is a creditor of the company.Any debenture is a long term…

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Plato Corp.…

A:

Q: On January 2, 2019, Lindsay Corporation issued $800,000 of 8% convertible bonds at par. The bonds…

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

Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

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

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

A: Workings: Calculation of face value of bond: = 4000 x 1000 = 4000000   Calculation of selling price…

Q: On September 1, 2020, Wildhorse Company sold 9,960 of its 9%, 15-year, $1,000 face value,…

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

Q: On January 1, 2020, Crane Corp. sold at 106, 100 of its $1,000 face value, five-year, 7%…

A: Retractable bond: This is a bond type where the bond holders can demand the issuer to redeem at face…

Q: On August 1, 2021, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104.…

A: a) Step 1: Prepare the journal entry to record the issuance of the bonds by Limbaugh

Q: On January 1, 2019, COT Co. issued P1,500,000, 12% convertible bonds due after 4 years. The bonds…

A: Fair value represents the market value of the asset whereas, book value represents the value of…

Q: On January 1, 2019, Scutaro Company issued 10-year, $200,000 face value, 6% bonds at par (payable…

A:

Q: On September 1, 2020, Crane Company sold at 104 (plus accrued interest) 3,000 of its 9%, 10-year,…

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

Q: On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024.…

A: Issued Price of Bonds ($900000 * 102%) $9,18,000 Number of bonds issued ($900000 / $1000) 900…

Q: OI March 1, 2021, Remy Corporation issued $1,000,000 of 8% nonconvertible bonds at 104, which are…

A: Paid-in capital is the money a company has received from investors in return for issuing stock.…

Q: On January 1, 2019, Ventionary issued bonds with an estimated value of 10 years, $ 3,000,000 (face…

A: Compute diluted earnings per share for 2019:  Formula: net income after tax saving / total…

Q: On May 1, 2021, Marly Co. issued $2,500,000 of 7% bonds at 103, which are due on April 30, 2031.…

A: 1. Collection from issue of Bonds Total Bonds Issued are $25,000 Bonds Face  Value = $100 per bonds…

Q: On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 104, due on February 28,…

A: Increase in shareholders equity=Number of bonds issued×Stock warrants per bond×Market price of each…

Q: On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024.…

A: No of warrants=900*20 =18000

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 July 1, 2021, an interest payment date, $143000 of Crane Company bonds were converted into 2900…

A: The company can raise the required capital by issuing the shares, debentures, bonds, etc., These are…

Q: On January 1, 2021, Fowl Products issued $89 million of 6%, 10-year convertible bonds at a net price…

A: Req. Account Titles Debit Credit 1. Cash $91,500,000     Convertible bonds payable   $89,000,000…

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 - (Face value of bonds x issue price/100)  =…

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.