f each year. Aumont Company allocates interest and unamortized discount or premium on the effective-interest basis. c) Prepare the journal entry to record the interes

Q: On June 30, 2020, Ayayai Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520, a…

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

Q: On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1,…

A: The bonds purchased are reported as assets in the balance sheet. The interest revenue for bonds is…

Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…

A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated…

A: The bonds are the financial instruments that are issued to raise the funds from the market or…

Q: Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2.…

A: Under the Straight line method, a Bond premium or discount is amortized equally over the bond term…

Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…

A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: Stark Ltd sold IDR 6,200,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January i…

A: No. Date Account Titles and Explanation Debit Credit 1. January 1, 2019 Cash (IDR…

Q: On January 1, 2019, the JSW Corporation issued 10% bonds with a face value of $100,000. The bonds…

A: Answer - Working Note : The computation of the interest expense is shown below:   The bond interest…

Q: On January 1, 2020, Pearl Company purchased at par 8% bonds having a maturity value of $270,000.…

A: Journal Entry: It involves keeping the records of all financial transactions of an entity. which…

Q: On January 1, 2025, Oriole Company purchased at par 8% bonds having a maturity value of $260,000.…

A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Q: Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June…

A: The financial instrument which provides fixed interest as a return over the period of investment is…

Q: On January 1, 2019, Calvert Company issues 11%, $100,000 face value bonds for $103,587.53, a price…

A: Lets understand the basics.Premium of discount on issue of bond can be amortized using,(1) Effective…

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: On January 1, 2023, Culver Corp. purchased at par 12% bonds with a maturity value of $309,000. They…

A: Answer:- Journal entry:- A journal entry is basically the act of recording all the transactions…

Q: Swiss Inc. sold 20-year bonds with a total face amount of $401,000 and a stated rate of 7.5%. The…

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

Q: On October 1, 2020 Concord Corporation issued 5%, 10-year bonds with a face value of $7930000 at…

A: On 01.10.2020, Concord corporation issued 10 year bonds with face value = $7930000 Issued price per…

Q: On January 1, 2019, Cranky Company issued 100, 5% stated. rate $1,000 bonds dated January 1, 2019,…

A: Bond valuation is a method for figuring out an individual bond's hypothetical fair value. Bond…

Q: On June 30, 2020, Kingbird Company issued $3,120,000 face value of 15%, 20-year bonds at $3,824,160,…

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

Q: n Jan 1, 2020, Liezel Company issued 10% bonds in the face amount of P5,000,000 that mature on Jan…

A: Solution Given Face value 5000000 Issue price 4580000 Coupon rate 10%…

Q: (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,…

A: Introduction: The effective interest technique is a standard for amortizing or discounting bonds.…

Q: On January 1, 2020, Bridgeport Company purchased 9% bonds having a maturity value of $290,000, for…

A: A bond amortization schedule is a table or spreadsheet that outlines the periodic payments and…

Q: pare a schedule of interest expense and bond amortization for 2020–2022.

A: Amortization of bonds refers to the process in which the carrying value of the bond is adjusted with…

Q: elmania, Incorporated, issues 7%, 15-year bonds with a face amount of $64,000 for $58,467 on January…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on…

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

Q: The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: On January 1, 2025, Bramble Company purchased 11% bonds having a maturity value of $301,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: Devon Harris Company sells 9% bonds having a maturity value of $2,984,000 for $2,661,311. The bonds…

A: Effective interest rate refers to the income that an individual receives by holding onto the bond…

Q: On January 1, 2020, Oriole Company purchased 6% bonds, having a maturity value of $620,000 for…

A: Solution A Bond represents a loan to company or government in return of this company pay a fixed…

Q: On January 1, 2020, Ayayai Company purchased 9% bonds having a maturity value of $250,000, for…

A: Bonds are debt securities issued by governments, municipalities, corporations, or other entities to…

Q: On October 1, 2019, Ball Company issued 6% bonds dated October 1, 2019, with a face amount of…

A: The procedure of entering commercial transactions for the first time in the books of accounts is…

Q: On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on…

A: Solution: Interest expense on July 1 = P9,160,000*12%*6/12 = P549,600 Semiannual interest paid =…

Q: On January 1, 2019, Salt Mine Corporation purchased at par 8% bonds having a maturity value of…

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

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

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

Q: On January 1, 2020, Windsor Company purchased 10% bonds having a maturity value of $340,000, for…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…

A: The bonds are the financial instruments that are used to raise money from the market.

Q: On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a…

A: Bonds payable refer to financial instruments which can be issued to raise capital. Bonds are issued…

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.