On January 1, 2019, Rodgers Company purchased $400,000 face value, 10%, 3-year bonds for $390,009.00, a price that yields a 11% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31. Required Prepare an investment interest income and discount amortization schedule using the effective interest method. Additional Instruction

Q: A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid…

A: Discount on bonds payable:The excess of par value over the carrying value of the bonds will be…

Q: On April 1, 2020, Lucky Corp. purchased P1,000,000 face amount 12% bonds at 94. Bonds pay interest…

A: Bonds represent the loan for the company on which a percentage of interest has to be paid by the…

Q: Ellis company issues a 6.5%, five year bonds dated January 1, 2019, with a $250,000 par value. The…

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

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 January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

Q: On January 1, 2019, company acquired 2,000,000 face amound bonds dated January 1, 2022. The bonds…

A: Introduction' Bond is a investment securities that is issued by company where investors lends money…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Available for Sale (AFS): When investments are made in securities with an intention to make profit…

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Following is the given information:

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Face value of bond $30,000.00 Coupon rate 6% Effective interest rate 10.00% Years to maturity…

Q: On January 1st, 2021, Lemon Corporation issued $800,000 of 20 year 10% bond at 104. Interest was…

A: Bonds are a form of loan or debt issued by the company, on which it has to make interest payments.…

Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…

A: solution : given: face vale            =4000000 interest payable            = semiannually interest…

Q: On January 1, 2024, Reyes Recreational Products issued $125,000, 10%, four-year bonds. Interest is…

A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…

Q: ente the liability sec

A: Here Montano Inc. issued bonds at 9% when the market interest rate was 7%.  Due…

Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…

A: Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers to attract…

Q: n January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $900,000 at…

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

Q: [The following information applies to the questions displayed below.] On January 1, 2021, Universe…

A: The schedule is especially important for loans such as mortgages, auto loans, and other installment…

Q: at 95. T

A: The journal entries and bonds payable as,

Q: Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $760,000 of…

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Q: On January 1, 2019, Rodgers Company purchased $200,000 face value, 10%, 3-year bonds for…

A: Bond is financial instrument which generates interest. Bonds also known as fixed income instruments.…

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: Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

A: In this question, information related to bonds was given, on the basis of which we have to make an…

Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…

A: Answer:-  Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers…

Q: Journal entry to record the second period of interest, June 30,  Matrix would record a credit to…

A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…

Q: Recording Entries for AFS Debt Securities- Effective Interest Method Adjust FVA at Sale and Year-End…

A: Journal entry: It is prepared to record the financial and non financial transaction of the business…

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: 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: On January 1, 2020, Pharoah Company purchased $320,000, 6% bonds of Aguirre Co. for $294,044. The…

A: Working note: Computation of carrying value of the bond investment as on December 31, 2021:

Q: On January 1, 2018, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable…

A: Amortization schedules show down how much of each payment goes toward principle reduction and how…

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation to yield…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Sheridan Company received proceeds of $812000 on 10-year, 8% bonds issued on January 1, 2019. The…

A: In the straight-line method of amortization, an equal amount of discount or premium on the issue of…

Q: On J anuary 1, 2019, kelly Corporation acquired bonds wiili a face value of $500,000 for $483841.79,…

A: A journal entry is the technique through which a firm records every individual financial…

Q: A company issues $16700000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: Prepare journal entries for the following transactions.

A: Bonds are issued by large organization to raise the fund. Bonds are considered as debt securities…

Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…

A: Accrued interest is one of the current asset being held by the business. This means interest revenue…

Q: On 1 January 2021, Fortune Forever Limited (FF) purchased $500,000, 10% bonds with a maturity of 10…

A:

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: Dahlia Company purchased a P2,000,000 12% face value bonds, 10 years, on April 1, 2019 for…

A: Amortization on bonds is the the matching the carrying value of bonds to the maturity of the bonds.…

Q: On January 1, 20x1, SENECTITUDE OLD AGE Co. issued its 12%, 3-year, P2,000,000 convertible bonds at…

A: Issue date= Jan 1, 20X112% convertible bonds at 110Conversion ratio= 1 bond= 8 shares

Q: Krause Corporation issued $2,600,000​, 10​-year, 5​% bonds for $2,470,000 on January​ 1, 2019.…

A: Amortization is defined as the technique used to  lower the book value of the intangible asset…

Q: On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

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.