How much is the gain on sale of bond

Assignment Help Financial Accounting
Reference no: EM133001479

On January 1, 2020, the BTS Company purchased P800,000 of 6% bonds for P883,874. The bonds are dated January 1, 2020, and the interest is payable every December 31. At the time the bonds were purchased the market interest rate was 4%. The bonds mature on December 31, 2025. BTS Company uses the effective interest method of amortization and classified as debt investment @ Amortized cost. The bonds were sold in January 1, 2021 at a total proceeds of P902,678.

Problem 1:
How much is the gain (loss) on sale of bonds?

Reference no: EM133001479

Questions Cloud

How much is the amount reported in other comprehensive incom : BTS Co. purchased P500,000 of 9%, 4-year bonds from TWICE, Inc. How much is the amount reported in other comprehensive income in 2021?
Information provided by joe black : The Credit Officer at Real Bank has awarded a score to Joe Black based on information provided for each category considered for risk assessment relating to his
What options do have for data analytic tools : How to describe descriptive, predictive, and prescriptive data analytics? What options do we have for data analytic tools? Which option is the best
Quantitative analysis of fiscal responsibility : Your friend is in need of your help. She needs to borrow $283 today. She will not be able to pay you back for a year, but she promises to pay you back $298 a ye
How much is the gain on sale of bond : How much is the gain (loss) on sale of bonds? On January 1, 2020, the BTS Company purchased P800,000 of 6% bonds for P883,874.
How many acres are in a square mile : News about the recent wildfires generally talk about number of acres burned by the fires. Most people don't think in terms of acres. If an acre is defined to be
Calculate the after-tax salvage cash flow : Adams, Incorporated would like to add a new line of business to its existing retail business. The new line of business will be the manufacturing and distributio
Slowdown of global economies : COVID -19 Pandemic has impacted International Business in a big way - by way of a slowdown of global economies, Demand and Supply shocks. Discuss.
How financial cooperative starts to operate : Please help me answer this question: How financial cooperative starts to operate?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the current price of the common stock

The company’s last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?

  Prepare journal entries for the year ended june

Prepare journal entries for the year ended 30 June 2022 assuming that control for the tunnel transfers to the customer in line with the stage of completion.

  Which is the better investment assuming a cost of capital

$1.4 million in the first year, with cash flows increasing by 4% per year after that. Assuming a cost of capital of 13%, which is the better investment?

  Use perpetual inventory system

The following merchandise transactions occurred during December for two different companies: Rippen and Burnen. Both companies use a perpetual inventory system. What is the amount of net sales to be reported on Rippen Corporation's income statement?

  What is the interest rate on the debt

The levered capital structure would have 12,400 shares of stock and $91,000 of debt. What is the interest rate on the debt? Ignore taxes.

  What is the payback period for the set of cash flows

What is the payback period for the set of cash flows given above?

  Discuss how vat system works by using relevant examples

Discuss how VAT system works by using relevant examples and list and explain the VAT supply categories; provide relevant examples of each category.

  What is the npv of the expansion project

Sol expects to recover this amount at the end of the project. What is the NPV of this expansion project at a 16% required rate of return?

  What is the stock current value per share

Hemsworth Brothers is expected to pay $0.50 per share dividend at the end of the year. What is the stock's current value per share

  The journal entry to record labor costs

Colfax company incurred production labor costs of $5,400 in Feb(payable in march) for work requiring 1,100 standard hours, at a standard rate of $15.00 per hour: 1,200 actual direct labor hours were worked. Based on this information, which one of the..

  What net amount of the capitalized software cost

On December 31, 2021, the software had a net realizable value of 4,500,000. What net amount of the capitalized software cost

  What amount be recorded as goodwill by burrough corporation

Burrough also paid $3,000 to a search firm for finder's feesrelated to the acquisition. What amount will be recorded as goodwill by BurroughCorporation while recording its investment in Helyar?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd