Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues:

Required

Answer the following for each bond issue:

a. Were the bonds issued at a premium and/or discount?

b. Journalize the issuance of bond issue A and B on June 1, 2020, and April 1, 2018, respectively.

c. What is the contract interest rate for each bond issue?

d. Interest of how much is paid how often for each bond issue?

e. What is the term of each bond issue?

f. Show how each of the bonds would appear on the balance sheet under non-current liabilities at July 31, 2026.

g. Calculate the total bond interest expense that would appear on the income statement for the year ended July 31, 2027.

h. Independent of (a) through (g), assume both bond issues were retired on December 1, 2027, at 97. Record the entries.

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Bond Issue A (A) Cash (B) Perlod (C) (D) (E) Interest Paid Interest Carrying $680,000 x 9% x 6/12 Expense Amort. Unamortized Value (E) x 8% x 6/12 $680,000 ÷ (D) Period Ending (A) – (B) Balance $43,042 $723,042 June 1/20. $ 30,600 $ 28,922 $ 1,678 Dec. 1/20. 41,364 721,364 Dec. 1/26. 30,600 27,913 2,687 15,137 695,137 2,795 June 1/27. 30,600 27,805 12,342 692,342 1/27 2,906 689,436 Dec. 30,600 27,694 9,436 27,577 6,413 June 1/28 30,600 3,023 686,413 683,270 Dec. 1/28 30,600 27,457 3,143 3,270 30,600 27,330 680,000 June 1/29 3,270 -0- $550,800 $507,758 $43,042 Totals. Bond Issue B (A) Cash (B) Period Interest (D) (E) Interest Pald Expense Carrying $540,000 x (E) x 8.5% х 3112 Amort. Unamortized Value $540,000 – (D) Period Ending 8% x 3/12 (A) – (B) Balance $18,067 Apr. 1/18 $521,933 $ 10,800 $ 11,091 $ 291 1/18. Jul. 17,776 522,224 1/26. 11,359 Аpг. 10,800 559 4,918 535,082 1/26. 570 535,652 10,800 11,370 Jul. 4,348 536,235 Oc. 1/26 10,800 11,383 583 3,765 1/27 10,800 Jan. 11,395 595 3,170 536,830 Apг. 608 2,562 1/27. 10,800 11,408 537,438 1,941 Jul. 1/27 10,800 11,421 621 538,059 Oct 1/27 10,800 11,434 634 1,307 538,693 11,447 647 660 Jan. 1/28 10,800 539,340 Apr. 1/28 10,800 11,460* 660 -0- 540,000 $432,000 $450,067 $18,067 Totals.