In January 2018, Conan, a cash basis taxpayer, purchases for $4,000 a Series EE savings bond with a maturity value of $4,800 (a 6% annual yield). At the same time, he also purchases for $5,000 a 3-year bank certificate of deposit with a maturity value of $6,650 (a 10% annual yield). Both securities mature in 2020. Note: To determine CD interest income in 2020, subtract the Beginning Book Value from the Ending Book Value (maturity value). a. Conan must recognize $ of interest income in 2018. b. Conan will recognize $ of interest income in 2020.

Sheridan Electronics issues a $376,500, 3%, 10-year mortgage note on December 31, 2021. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $44,137. Payments are due on December 31. Prepare the entries for (1) the loan and (2) the first installment payment.

Parton owes $3 million that is due on March 5, 2021. The company borrows $2,600,000 on February 25, 2021(5-year note) and uses the proceeds to pay down the $3 million note. How much of the $3 million note is classified as long-term in the February 28, 2021 financial statements?

Subject: acounting

On December 31, 2020, Phil purchased $20,000 of newly issued bonds of Texas Corporation for $16,568. The bonds are dated December 31, 2020. The bonds are 9%, 10-year bonds paying interest semiannually on June 30 and December 31. The bonds are priced to yield 12% compounded semiannually. Read the requirements. Requirement a. What is the amount of the original issue discount? Start by completing the bond amortization table for the first year. (Round all amounts to the nearest dollar.) Amortization of Original Issue Discount Taxpayers Basis for the Bond Year Interest Received Interest Income December 31, 2020 June 30, 2021 December 31, 2021 The amount of the original issue discount is Requirement b. For the first semiannual period, what is the amount of the original issue discount Phil must recognize as ordinary income? (Round the amount to the nearest dollar.) The amount of the original issue discount Phil must recognize as ordinary income for the first semiannual period is Requirement…

On January 1, 2020, Ann Price loaned $157773 to Joe Kiger. A zero-interest-bearing note (face amount, $210000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 10%. The present value of $210000 at 10% for three years is $157773. What amount of interest income should Ms. Price recognize in 2020? $44350. $63000. $15777. $21000.

On July 1, 2019, Montana Company has bonds with balances as shown below.                  Bonds Payable   70,000       Discount on Bonds Payable 3600         If the company retires the bonds for $71,150, what will be gain or loss on the retirement.

On June 1, 2020, Waterway Industries loaned Carla Vista $504000 on a 11% note, payable in five annual installments of $100800 beginning January 2, 2021. In connection with this loan, Carla Vista was required to deposit $5040 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Carla Vista after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2020. Carla Vista made timely payments through November 1, 2020. On January 2, 2021, Waterway received payment of the first principal installment plus all interest due. At December 31, 2020, Waterway's interest receivable on the loan to Carla Vista should be O $0. O $14280. O $9240. O $5040.