14-10A Recording bonds LO5, 6, 7 Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A (A) Cash (B) Period (E) Interest Period Ending June 1/20 Dec. 1/20 Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Interest Paid $630,000 7.0% 6/12 Expense (E) 6.0% 6/12 (C) Amort. (0) Carrying Value Unamortized $630,000+ (A)-(B) $ 22,050 $ 20,200 $1,850 Balance $43,324 41,474 (D) $ 673,324 671,474 22,050 19,412 2,638 14,426 644,426 22,050 19,333 2,717 11,709 641,709 22,050 19,251 2,799 8,910. 638,910 22,050 19,167 2,883 6,027 636,027 Dec. 1/28 22,050 19,081 2,969 3,058 633,058 June 1/29 22,050 18,992 3,058 0 630,000 Totals $ 396,900 $ 353,576 $43,324 "Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Required: 1. Bond Issue A a. Were the bond A issued at a premium and/or discount? O Issued at discount Required: 1. Bond Issue A a. Were the bond A issued at a premium and/or discount? O Issued at discount O Issued at premium O Issued at premium & discount b. Journalize the issuance of bond A on June 1, 2020. View transaction list Journal entry worksheet < 1 Record the sale of bonds at a premium on the original issue date. Note: Enter debits before credits Date June 01, 2020 General Journal Debit Credit b. Journalize the issuance of bond A on June 1, 2020, View transaction list Journal entry worksheet < Record the sale of bonds at a premium on the original issue date. Note: Enter debits before credits. Date June 01, 2020 General Journal Debit Credit View general journal Record entry Clear entry c. What is the contract interest rate for the issue bond A? Contract interest rate % d. Interest of how much is paid how often for bond A issued? Interest paid e. What is the term of bond A issue? Term of each bond iste year term f. Show how bond A would appear on the balance sheet under non-current liabilities at July 31, 2026 (Enter all amounts as positive values.) Non-current liabilities Balance Sheet (Partial) g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027 Total bond eerst expense h. Independent of (a) through gl assume bond A issues were retired on December 1, 2027, at 97 Record the entries h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries View transaction list Journal entry worksheet < Record the payment of interest on bonds.. Note: Enter debits before credits Date December 01, 2027 General Journal Debit Credit Record entry Clear entry View general journal Bond Issue B (A) Cash Interest Paid (e) Period Interest Expense $450,000.0 (E) 7.5% (e) Carrying (c) Amort. (D) Period Ending 7.0% 3/12 3/12 (A) (0) Unamortized Balance Value $490,000- Apr, 1/18 Jul 1/18 $17,128 (0) $472,872 $ 8,575 $291 10,837 473,163 Apr. 1/26 8,575 9,093 5181 4,511 Jul. 1/26 8,575 9,103 520 486,017 Oct. 1/26 8,575 9,113 538 ces 3,445 486,555 Jan. 1/27 8,575 9,123 548 2,097 487,103 Apr. 1/27 8,575 9,333 558 2,339 487,661 Jul. 1/27 8,575 9,144 569 1,770 488,230 Oct. 1/27 8,575 9,154 579 1,1911 488,809 Jan. 1/28 8,575 9,105 590 601 489,399 Apr. 1/28 8,575 9,176 601 490,000 Totals $343,000 $360,128 $17,128 "Adjusted for rounding 2. Bond Issue B a. Were the bond B issued at a premium and/or discount? O Issued at discount O issued at premium O Issued at premium & discount b. Journalize the issuance of bond B on April 1, 2018. View transaction list Journal entry worksheet Record the Issuance of bonds at a discount. Note: Enter detits before credits Date April 01, 2018 General Journal Debil Credit Clear entry View general journal Record entry c. What is the contract interest rate for the issue bond B? Contract interest rate d. Interest of how much is paid how often for bond B issued? Interest pind e. What is the term of bond B issue? Tem of each bond issue year term f. Show how bond B would appear on the balance sheet under non-current Babilities at July 31, 2026. Non-current liabilities Balance Sheet (Partial) g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027 Yotal bond interest expense 4 h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries Pray 7f7 Next > 10 A h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries View transaction list Journal entry worksheet < 1 Record the interest paid on bonds. Note: Enter detats before credits Date December 01, 2027 General Journal Debit Credit View general journa Record entry Clear entry < Prev 77 Next>>