On May 1, 2021, Sunland Company issued $1430000 of 7% bonds at 102, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Sunland’s common stock, $15 par value, were attached to each $1000 bond. The bonds without the warrants would sell at 96. On May 1, 2021, the fair value of Sunland’s common stock was $35 per share and of the warrants was $2. On May 1, 2021, Concord should record the bonds with a premium of $42 900 discount of $14 300 discount of $57 200 discount of $29 744.

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: Sarasota Inc. issued $4,170,000 of 10%, 10-year convertible bonds on June 1, 2020, at 97 plus…

A: Solution: When a bond is sold at a discount, the amount of the bond discount must be amortized to…

Q: On July 1, 2021, an interest payment date, $148000 of Bramble Corp. bonds were converted into 2930…

A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

Q: Pharoah Company purchased $1700000 of 11% bonds of Scott Company on January 1, 2021, paying…

A: Bond :- It is one of the type of securities that pays fixed periodic interest and face value at the…

Q: equired: ) Determine the price of the bonds on January 1, 2024. ) By how much will ABC Company's…

A: Bond issuance date Jan,1,2024 10% Bond -$ 800000 Yield 8% Interest is payable on 30 June and 31Dec…

Q: On January 1, 2021, PRANCER Company was authorized to issue 12% bonds with a face amount of…

A: Bond Issue Bond is an instrument which was issued by the federal authority which was used by the…

Q: On January 1, 2019, TSLA Corporation issued 2,300 of its 10%, $1,000 bonds for $2,386,000. These…

A: Bonds that can be called for extinguishment before maturity are called callable bonds. When bonds…

Q: Waterway Inc. issued $15,400,000 of 12%, 40-year convertible bonds on November 1, 2020, at 98 plus…

A: a). Date Account title & Explanation Debit($) Credit($) December 31,2020 interest payable…

Q: On July 1, 2023, Sandhill Ltd., which follows ASPE, issued 1,000 convertible, five-year, $1,000…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: On January 1, 2021, Madison Products issued $75 million of 8%, 10-year convertible bonds at a net…

A: A bond conversion is the process of changes bond into shares. The number of shares that a bond can…

Q: On July 1, 2020, Martinez Corporation purchased at par 6% bonds having a maturity value of $350,000.…

A: Interest revenue = Debt investment x interest rate x no. of years = 350,000 x 6% x 1 = $21,000

Q: On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The…

A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…

Q: On April 1, 2021, Austere Corporation issued $320,000 of 14% bonds at 108. Each $1000 bond was sold…

A: To calculate the amount of proceeds from the bond issue that should be recorded as an increase in…

Q: On January 1.2020, Sarasota Company issued 10-year. S1810.o00 face value, 6 bonds, at par. Each $100…

A: Calculation of diluted earnings per share: =[Net Income + Interest expenses after tax] / [Number of…

Q: lue of each stock purchase

A: Answer b. $489,250             Cash recd = 103% X 500 Nos X $1,000 = $515,000…

Q: Bruce Co. sells $1,000,000 of 12% bonds on June 1, 2020. The bonds pay  interest on June 1. The due…

A: If the coupon rate is different from the bond's yield, the bond should be recognized in the books of…

Q: On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000…

A: When the bonds were converted into equity shares then the balance in Unamortized premium on bonds…

Q: urnal entry for April 1, 2021 bond conversion?

A:

Q: On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to…

A: Bonds are an instrument issued by the company on which interest is payable till maturity or…

Q: On January 1, 2025, Swifty Company purchased 12% bonds having a maturity value of $312,000 for…

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

Q: On April 1, 2020, Flounder Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: Bonds are debt instrument that is generally issued by corporations or government entities to raise…

Q: Crane Inc. issued $3,840,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued…

A: The following information given below : 1. Issued $3,840,000 of 10%, 10-year convertible bonds on…

Q: On January 1, 2020, Safety Company issued 10,000 P1,000 bonds with 10% stated interest payable every…

A: 3.How much is the net increase/decrease in the Shareholders' Equity during 2021? [Indicate whether…

Q: On March 1, 2025, Cullumber Corporation issued $1920000 of 8% nonconvertible bonds at 104. The bonds…

A: Paid-in capital is the money a company has received from investors in return for issuing stock. This…

Q: Prepare in general journal format the entry to record the issuance of the bonds. (List all debit…

A: Bonds are debt instruments that pay periodic interest and return the principal at maturity, while…

Q: On August 1, 2021, Sheffield Corporation, a public company, purchased $86,400 of Alaska Ltd.…

A: SHEFFIELD CORPORATION BALANCE SHEET (PARTIAL) For the year ended December 31, 2021…

Q: On May 1, 2021, Coronado Industries issued $2950000 of 7% bonds at 104, which are due on April 30,…

A: Bonds are the highly secured securities which are redeemable after a certain span of time.

Q: On August 1, 2024, Perez Communications issued $44 million of 12% nonconvertible bonds at 105. The…

A: Bonds -A bond is a type of debt instrument that the government or business can use to raise money.…

Q: On January 1, 2020, Teal Company purchased 9% bonds having a maturity value of $370,000, for…

A: Interest receivable = face value of investment x  interest rate = 370,000 x 9% = $33300

Q: Windsor Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…

A: The following information given in the question: 1.  Issued $3,840,000 of 11%, 10-year convertible…

Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…

A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000     Fair market value of bonds ($2000000 *…

Q: On August 1, 2021, Limbaugh Communications issued $30 million of 11% nonconvertible bonds at 103.…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: On May 1, 2021, Swifty Corporation issued $1410000 of 8% bonds at 104, which are due on April 30,…

A: Proceeds from the issue of the bonds at 104%        = ($1410000 × 104%)         = $1466400…

Q: On January 1, 2019, Yellow Company issued its P3,000,000, 8%, 5-year bonds that resulted in a bond…

A: Share Premium: The Securities Premium is a provision of the Company Law that applies to the issuance…

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a…

A: The book value method is a method for recording the conversion of a bond into stock. To put it in…

Q: s convertible into 35 common shares, which are currently trading at $34 per share.  Similar bonds…

A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants for O $60672. O $63600. O…

A: Bonds are fixed-income securities that reflect investor loans to borrowers (typically corporate or…

Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: . Compute for the issue price of the bonds on January 1, 2019. 2. Compute for the bonds outstanding…

A: 1. There was no need of interest calculation. So, it's ignored.  2. Bonds are retired before…

Q: On December 1, 2017, Cone Company issued its 10%, $550,000 face value bonds for $640,000, plus…

A: Bond redemption is the process of repaying the principal amount of a bond to its bondholders upon…

Q: On January 1, 2021, Rapid Airlines issued $275 million of its 10% bonds for $254 million. The bonds…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: (a) April 1, 2020: issuance of the bonds. (b) October 1, 2020: payment of semiannual interest. (c)…

A: Working Notes:1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…

Q: On December 1, 2017, Cone Company issued its 9%, $450,000 face value bonds for $520,000, plus…

A: Number of bonds=Total valueIssue price=$450,000$100=4,500

Q: On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024.…

A: Issued Price of Bonds ($900000 * 102%) $9,18,000 Number of bonds issued ($900000 / $1000) 900…

Q: On January 1, 2021, Rapid Airlines issued $200 million of its 8% bonds for $184 million. The bonds…

A: Required: 1. Prepare the journal entry to record interest on June 30, 2021 (the first interest…

Q: On April 1, 2020, Concord Company sold 25,200 of its 10%, 15-year. $1,000 face value bonds at 97.…

A: Answer:-  Journal entry meaning:- Journal entry is basically the record of all the business…

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.