Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $255,369,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022, rounded up to the nearest thousand?

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A: Introduction: A journal entry is a recording of a business contract in the accounting system of a…

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A:

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A: GIVEN   On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million,…

Q: Req 1 Req 2 to 4 Prepare the journal entries to record their issuance by The Bradford Company on…

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A: Given information is: On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds…

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A: The bonds are the financial instruments for the business to raise money from the investors. The…

Q: Auerbach Inc. Issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Bonds are a form of debt or liability for the business, on which regular interest payments also…

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A: Bonds refer to the financial instrument issued by the bank or financial institution at a specified…

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A: Net present value:Calculation used to evaluate the investment and financing decisions that involve…

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A: Bonds are a type of loan that is, obtained by company in exchange of predetermined rate of interest…

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A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On January 1, 2022, Broncos Universal issued 12% bonds dated January 1, 2022, with a face amount of…

A: Bond Price :— It is sum of present value of periodic interest payment and face value amount.    If…

Q: Bonds with a stated interest rate of 9% and a face value totaling $632,000 were issued for $657,280…

A: Bond amortization refers to the value which is paid at every period including the amount of…

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

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Q: On January 1, 2021, ABCompany issued 10% bonds dated January 1, 2021, with a face amount of $20…

A: 1. Determine the price of the bonds at January 1, 2021.

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A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

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A:

Q: $939,000 to yield 10%. Alquds uses the effective-interest method of amortizing bond discount.…

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A: Bonds are the debts for the company issued to the investors at fixed rate of interest. There are…

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A: Step 1: Introduction to Bonds Payable:Like other liability accounts, the bonds payable account has a…

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A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…

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A: The bonds refer to the debt instruments issued by corporations and government entities. When bonds…

Q: On June 30, 2021, Moran Corporation issued $13.5 million of its 6% bonds for $12.1 million. The…

A:

Q: On May 1, 2016, Bench Co. issued 11% bonds in the face amount of P 1,000,000 that mature on May 1,…

A: Solution: Face amount of bond= P1,000,000 Premium on issue of bond = P62,000 Issue price of bond =…

Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A:

Q: When Patey Pontoons issued 4% bonds on January 1, 2024, with a face amount of $660,000, the market…

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A: Bonds are issued by companies and government entities to raise the required funds for meeting the…

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A: Please see Step 2 for required information.

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Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

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A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a…

A: The present value represents the present value of the bond that will be redeemed in the future.…

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A: Prepare journal entries as follows: Result:

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A: Bonds are a method of raising long-term funds by a business, wherein borrower company borrows a…

Q: On January 1, 2023, ACT Company issues 1,000 of its 12%, P 1,000 face value bonds at 112, a price…

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Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $94 million on January…

A: 1. Given, Face amount = $94000000 n = 10 x 2 = 20 i = 10%/2 = 5% Market yield = 12%/2 = 6% Cash…

Q: On June 1, 2024, Blossom Bottle Company sold $3,720,000 in long-term bonds for $3,262,833. The bonds…

A: Bonds are a long-term liability that are issued for a fixed term. A periodic fixed interest is paid…

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.