anment #26 Saved Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Cash Interest Paid $720,000 10.0 X 6/12 (B) Period Interest Expense (E) 9.0% 6/12 Art. (A) - (0) Period Ending June 1/20 Dec 1/20 D) Unter tized Balance $43,776 42, 146 Carrying Value $720.000 (D) $763, 776 762, 1:46 $36.000 3 34,370 $ 1.630 Dec 1/26 Juris 1/27 Dec. 1/27 June 1/28 Dec 1/28 June 1729 Totals 36.000 35,000 36,000 36.000 36,000 36.000 $ 648.000 33, 236 83. 111 32, 981 32,845 32, 703 32,553 $ 604,224 2,764 2,889 3,019 3, 155 3, 297 3,447 $43, 776 15,807 12.918 9.899 6,744 3,447 0 735, 807 732,918 729,899 726, 744 723. 447 720,000 *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? Issued at discount Issued at premium Issued at premium & discount 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? Termoleach bond issue year term f. Show how bond A would appear on the balance sheet under non-current liabilities at July values) Balance Sheet (Partial) Non-current liabilities S ment #2 0 Saved g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027 Total bond interest expense 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 1 2 Record the payment of interest on bonds. Note: Enter debits before credits. Debit Credit Date General Journal Journal entry worksheet 1 2 Record the payment of interest on bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 01, 2027 Record entry Clear entry View general journal Journal entry worksheet anment #26 Saved Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Cash Interest Paid $720,000 10.0 X 6/12 (B) Period Interest Expense (E) 9.0% 6/12 Art. (A) - (0) Period Ending June 1/20 Dec 1/20 D) Unter tized Balance $43,776 42, 146 Carrying Value $720.000 (D) $763, 776 762, 1:46 $36.000 3 34,370 $ 1.630 Dec 1/26 Juris 1/27 Dec. 1/27 June 1/28 Dec 1/28 June 1729 Totals 36.000 35,000 36,000 36.000 36,000 36.000 $ 648.000 33, 236 83. 111 32, 981 32,845 32, 703 32,553 $ 604,224 2,764 2,889 3,019 3, 155 3, 297 3,447 $43, 776 15,807 12.918 9.899 6,744 3,447 0 735, 807 732,918 729,899 726, 744 723. 447 720,000 *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? Issued at discount Issued at premium Issued at premium & discount 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? Termoleach bond issue year term f. Show how bond A would appear on the balance sheet under non-current liabilities at July values) Balance Sheet (Partial) Non-current liabilities S ment #2 0 Saved g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027 Total bond interest expense 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 1 2 Record the payment of interest on bonds. Note: Enter debits before credits. Debit Credit Date General Journal Journal entry worksheet 1 2 Record the payment of interest on bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 01, 2027 Record entry Clear entry View general journal Journal entry worksheet
