Naval Inc. Issued $20,000,000 face value bonds at a premium and recieved $21,450,000. At the end of 2019, the balance in the Premium on Bonds Payable account is $556,000. This year's balance sheet will show a net liability of

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: Marin Corporation issued $468,000 of 6% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: A bond is a fixed-income instrument that is used to raise capital by organizations. Bonds are issued…

Q: On January 1, 2025, Stellar Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were…

A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

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, 2025, Flounder Corporation issued $550,000 of 7% bonds, due in 8 years. The bonds were…

A: Journal Entries - Flounder CorporationDateAccount Title & ExplanationDebitCredit1-Jan-25Cash…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: Given: Par value of bonds: $200000 Rate of interest 6% Maturity year IS 10 Interest is paid annually…

Q: On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for…

A: Journal entries: It is the duty of the accountant to record business economic and non economic…

Q: In the statement of financial position of Leblanc Company as of December 31, 2020, the following…

A: Redemption of the bonds = Face value of Bonds Payable x Redemption value / 100 = P1,000,000 x 98/100…

Q: Metro Inc. issued $200,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20…

A: Bond is financial investment securities where investors lend money to a person. Interest and…

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

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: Jashanpreet Industries Limited (JIL) issued $1,800,000, 8%, 20-year bonds on January 1, 2021 and…

A: JOURNAL ENTRIES FOR JIL DURING 2021 DATE…

Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…

A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…

Q: On January 1,2025 Waterway Corporation issued $390,000 of 9%% bonds, due in years. The bond issued…

A: Bonds are often utilized by both public and private sectors to generate capital for a variety of…

Q: Brazzle Inc. issued $ 200,000 face value bonds at a discount and received $ 185,000 . At the end of…

A: Net liability at year end = face value of bonds - Discount on Bonds Payable

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

Q: Preparing a Debt Disclosure As of December 31, 2020, Dole Company’s long-term debt consisted of the…

A: INTRODUCTION: The liability account for notes payable is a component of the general ledger.…

Q: 000. Intere 1, 2026. Th nounts to P1: rued interest

A: Journal  entries  in the books  of Prancer  Co. for the year 2021 Date 2021 Particular  Post…

Q: Windsor, Inc. has issued three different bonds during 2019. Interest is payable annually on each of…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2023,…

A: Journal entries are the foremost reporting of the business transactions in the books of accounts.…

Q: Strick Sticky Corp. is authorized to issue $2,000,000 of 8%, ten year bonds payable. On February 1,…

A: The amortization table is a table of the payments in which all the carrying values of the bonds are…

Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…

Q: Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were…

A: The following computations are done for Polk Incorporation.

Q: Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest…

A: Effective Interest rate refers to the compounded interest rate that the bond holder actually pays as…

Q: Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: Crane Company redeemed $178,000 face value, 17.5% bonds on June 30, 2022, at 98. The carrying value…

A: Premium on Bonds = Carrying value of the bonds - Face value of bonds = $190,000 - $178,000 = $12,000

Q: Burris Corporation is authorized to issue $800,000 of 9% bonds. Interest on the bonds is payable…

A: Date Accounts Titles Debit Credit Apr-01 Cash $8,18,000     Bonds Payable   $8,00,000…

Q: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: 1. Calculation for Bonds Issuance Entry  A) Discount on issue of bonds.   = Bonds Issue price-Bonds…

Q: Volunteer Inc. issued bonds with a $650,000 face value, 12% interest rate, and a 4-year term on July…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On August 1, 2021, Space Company issued at 97 plus accrued interest, 2,500 of its 12%, P1,000 bonds.…

A: Formula: Cash received on the issue of bonds= Face value of bond x Issue rate of bonds.

Q: On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond…

A: Bond :— It is one of the source of capital which gives fixed rate of interest and maturity value at…

Q: bonds, du 8 years. interest each July 1 and January 1. The effective-interest rate is 8%. Date…

A: Bonds payable is long term liability as these are issued to raise funds. When the contract rate is…

Q: Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying value of $420,345 as…

A: Given information is: Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying…

Q: At January 1, 2020, Konerko Corp. issued $40,000,000 of 6%, 12-year bonds that paid interest…

A: Bonds: It is also known as fixed-income security, is a debt instrument created for the purpose of…

Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January…

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

Q: On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were…

A: The bonds are issued at a premium when the interest earnings on bonds are more than the interest…

Q: A. July 1, 2020: entry to record issuing the bonds. B. June 30, 2021: entry to record payment of…

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

Q: On January 1, 2025, Stellar Corporation issued $450,000 of 7% bonds, due in 10 years. The bonds were…

A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…

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.