User Account

All Pages

What amount should be recognized as gain on sale of bonds

Assignment Help Accounting Basics
Reference no: EM132568069

ABC Company purchased 8,000, P1,000 face amount, 9% bond to yield 10%. The carrying amount of the bonds on January 1, 2016 was P7,800,000. The bonds mature on June 30,2019 and pay interest semiannually on June 30 and December 31. The entity sold 4,000 bonds on March 1, 2016 for P3,920,000 after the interest has been received.

Question 1: What amount should be recognized as gain on sale of bonds?

Option 1: P0

Option 2: P15,000

Option 3: P25,000

Option 4: Answer not given

Option 5: P20,000

Reference no: EM132568069

Questions Cloud

Determine the State tax liability for state X : State Y uses an apportionment formula that double-weights the sales factor and has a 6 percent tax rate. Determine the State tax liability for state X
Mechanical bearings in aerospace application : Prepare project on Design and Selection of materials for Tribological applications of mechanical bearings in aerospace application
How much should be debited to accounts receivable : How much should be debited to Accounts Receivable on January 1, 2018? On January 1, 2018, ABC Co price of P100,000 on account under credit terms
How could the shortcoming have been prevented : Using a web browser and a search engine, search the terms "CitiBank backup tapes lost." You will find many results. Select one article and identify what.
What amount should be recognized as gain on sale of bonds : What amount should be recognized as gain on sale of bonds? ABC Company purchased 8,000, P1,000 face amount, 9% bond to yield 10%.
What are the privacy issues with data mining : Why are the original/raw data not readily usable by analytics tasks? What are the main data preprocessing steps? List and explain their importance in analytics.
Compute the amount to be capitalized as an asset : Compute the amount to be capitalized as an asset on the lessee's books for the concrete truck. Wonkwang knows that Han's implicit interest rate is 10%
What are the annual interest rates on the loans : What are the annual interest rates on the loans? The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one
What is the most would be willing to pay for the bond : he bond pays $30 every six months. The current market interest rate is 8%. What is the most you would be willing to pay for this bond?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Mathematical equation for break-even sales

How can the mathematical equation for break-even sales show both sales units and sales dollars? How do the formulas differ for contribution margin per unit and contribution margin ratio?

  Record transactions in appropriate general ledger accounts

Received $90,000 cash for providing services to customers. Record the transactions in the appropriate general ledger accounts

  Compute the amount of revenue and gross profit or loss

Compute the amount of revenue and gross profit or loss to be recognized in 2016, 2017, and 2018 using the completed contract method.

  Create general journal entries to record the transaction

Create general journal entries to record the transaction. Maverick Ltd issued a prospectus to the public offering 10 million shares at $1.50 each on 1 July 2018

  You have 4014629 in a brokerage account and you plan to

you have 40146.29 in a brokerage account and you plan to deposit an additional 6500 at the end of every future year

  Upper darby park department is considering a new capital

upper darby park department is considering a new capital investment. the following information is available on the

  What is a contingent liability

What is a contingent liability? Describe the three ranges of loss contingencies outlined in SFAS No. 5, including a brief summary of the accounting and disclosure requirements ?

  What is the balance in the investment in harrison account

What is the balance in the Investment in Harrison account found in the financial records of Puckett as of December 31

  How much revenue should varga recognize

How much revenue should Varga recognize in 2016, Varga Tech Services signed a $6,000 consulting a contract with Shaffer Holdings

  A company is planning to introduce a new portable tv to its

a company is planning to introduce a new portable tv to its existing product line. management must decide whether to

  How much are budgeted cash disbursements for june

The company makes loan payments of $4,000 per month of which $600 is interest and the remainder is principal. How much are budgeted cash disbursements for June

  Contribution margin per unit problem

Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of variable costs, and $12,000 of fixed costs. Contribution margin per unit is:

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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