Daniel purchased a bond on July 1, 2017, at par of $10,000 plus accrued interest of...
Daniel purchased a bond on July 1, 2017, at par of $10,000 plus accrued interest of $300. On December 31, 2017, Daniel received payment of the entire $600 interest payable on the bond for the year. On July 1, 2018, Daniel sold the bond for $10,200. Using monthly accrual of interest on the bond:
a. Daniel must recognize $300 interest income for 2017 and a $200 capital gain on the sale of the bond in 2018.
b. Daniel must recognize $600 interest income for 2017 and a $200 capital gain on the sale of the bond in 2018.
c. Daniel must recognize $300 interest income for 2017, $300 in interest income for 2018, and a $100 capital loss on the sale of the bond in 2018.
d. Daniel must recognize $300 interest income for 2017 and $200 in interest income in 2018. e. Daniel must recognize $300 interest income for 2017 and a $100 capital loss on the sale of the bond in 2018.
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Daniel purchased a bond on July 1, 2017, at par of $10,000 plus
accrued interest of...
3) Daniel purchased a bond on July 1, 2020, at par of $10,000 plus accrued interest...
3) Daniel purchased a bond on July 1, 2020, at par of $10,000 plus accrued interest of $300. On December 31, 2020, Daniel collected the $600 interest for the year. On January 1, 2021, Daniel sold the bond for $10,200. a. Daniel must recognize $300 interest income for 2020 and a $200 gain on the sale of the bond in 2021. b. Daniel must recognize $600 interest income for 2020 and a $200 gain on the sale of the bond...
Question 23 of 75. On July 1, 2017, Markie purchased a ten-year $10,000 bond. The bond...
Question 23 of 75. On July 1, 2017, Markie purchased a ten-year $10,000 bond. The bond has a stated interest rate of 4%, payable annually on July 1. On June 2, 2018, 336 days from the last interest pay ment, Markie sold the bond. The selling price includes how much accrued interest? $32 $368 $400 $768
On August 1, 2017, Alpha Company' retired a $10,000 bond at 102. On July 31, 2017...
On August 1, 2017, Alpha Company' retired a $10,000 bond at 102. On July 31, 2017 Alpha had accrued the interest payment for $250. At the date of retirement, the unamortized discount on the bonds was $400. Use this information to determine the dollar value of Alpha Company's: (Round all dollar values to the nearest whole dollar.) 1. Gain or Loss on Retirement of Bond: enter any loss dollar & amount inside of brackets ) 2. Cash paid to retire...
On May 1, 2017, Kevin purchased a taxable bond with a face value of $10,000. The...
On May 1, 2017, Kevin purchased a taxable bond with a face value of $10,000. The bond matures on May 1, 2020 and has a stated interest rate of 6%. Kevin paid $11,000 for the bond on the secondary market. He received one coupon payment of $600 on May 1, 2018; this was his only interest income for the year. He chooses annual accrual periods ending on May 1 of each year, and the amount of his bond premium amortization...
On July 1, 2016, Robert paid $10,000 for a ten-year U.S. Treasury bond with a stated...
On July 1, 2016, Robert paid $10,000 for a ten-year U.S. Treasury bond with a stated interest rate of 4%, payable annually on July 1. On February 9, 2017, 223 days after purchasing the bond, Robert sold the bond to Alex for $10,050. Which of the following should be reported on Robert's return? a) $0 of interest income and $50 of short-term capital gain. b) $156 of interest income and $50 of short-term capital gain. c) $244 of interest income...
P10-7B. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Cheney, Inc., which closes its...
P10-7B. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Cheney, Inc., which closes its books on December 31, is authorized to issue $800,000 of six percent, 20-year bonds dated March 1, with interest payments on September 1 and March 1. Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1. a. The bond issuance. b. Payment of the semiannual interest on September 1 c. Accrual...
On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero coupon bond. The market...
On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero coupon bond. The market initially prices these bonds at 10% effective rate. On January 1, 2018, ABC buys back the bond at $7,000. What is the gain/loss due to early extinguishment of debt?
a) On 1 July 2017, $10,000 was deposited into an account earning interest at 4 percent...
a) On 1 July 2017, $10,000 was deposited into an account earning interest at 4 percent per annum compounding monthly. $500 is to be withdrawn each month, commencing on 1 July 2018. How many full monthly withdrawals of $500 can be made? (4 marks)
QUESTION 5 Emrah purchased a corporate bond at its face amount of $5,000 on 1/1/2018. Under...
QUESTION 5 Emrah purchased a corporate bond at its face amount of $5,000 on 1/1/2018. Under its terms, the bond pays 696 interest on 12/31 of each year of its 48 month term. On June 30, 2018, Emrah sold the bond for $5.225. He is a cash basis, calendar year taxpayer. What is the amount and character (if any) of any amounts related to the bond sale that must be recognized on his 2018 return? $0 interest income: $225 long-term...
Rachelle purchased a 10,000 corporate bond on June 1,2017. The bond has a stated interest rate...
Rachelle purchased a 10,000 corporate bond on June 1,2017. The bond has a stated interest rate of 6%, payable annually on Dec 1. Since Rachelle purchased the bond between interest payment dates, how does she report the interest income on Schedule B, Interest and Ordinary Dividends? A. She reports 298, her proportion share of the interest as taxable income. No further adjustment is necessary B. She reports 351, the amount of interest earned from June 1 through Dec 1 C....
3) Daniel purchased a bond on July 1, 2020, at par of $10,000 plus accrued interest of $300. On December 31, 2020, Daniel collected the $600 interest for the year. On January 1, 2021, Daniel sold the bond for $10,200. a. Daniel must recognize $300 interest income for 2020 and a $200 gain on the sale of the bond in 2021. b. Daniel must recognize $600 interest income for 2020 and a $200 gain on the sale of the bond...
Question 23 of 75. On July 1, 2017, Markie purchased a ten-year $10,000 bond. The bond has a stated interest rate of 4%, payable annually on July 1. On June 2, 2018, 336 days from the last interest pay ment, Markie sold the bond. The selling price includes how much accrued interest? $32 $368 $400 $768
On August 1, 2017, Alpha Company' retired a $10,000 bond at 102. On July 31, 2017 Alpha had accrued the interest payment for $250. At the date of retirement, the unamortized discount on the bonds was $400. Use this information to determine the dollar value of Alpha Company's: (Round all dollar values to the nearest whole dollar.) 1. Gain or Loss on Retirement of Bond: enter any loss dollar & amount inside of brackets ) 2. Cash paid to retire...
P10-7B. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Cheney, Inc., which closes its books on December 31, is authorized to issue $800,000 of six percent, 20-year bonds dated March 1, with interest payments on September 1 and March 1. Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1. a. The bond issuance. b. Payment of the semiannual interest on September 1 c. Accrual...
a) On 1 July 2017, $10,000 was deposited into an account earning interest at 4 percent per annum compounding monthly. $500 is to be withdrawn each month, commencing on 1 July 2018. How many full monthly withdrawals of $500 can be made? (4 marks)
QUESTION 5 Emrah purchased a corporate bond at its face amount of $5,000 on 1/1/2018. Under its terms, the bond pays 696 interest on 12/31 of each year of its 48 month term. On June 30, 2018, Emrah sold the bond for $5.225. He is a cash basis, calendar year taxpayer. What is the amount and character (if any) of any amounts related to the bond sale that must be recognized on his 2018 return? $0 interest income: $225 long-term...
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