Bond Issue B

Period Ending	(A) Cash Interest Paid $480,000.0 8.0% 3/12	(B) Period Interest Expense (E) 8.5% 3/12	(C) Amort. (A) (B)	(D) Unamortized Balance	(E) Carrying Value $480,000 (D)
Apr. 1/21																	$	16,059				$	463,941
Jul. 1/21		$	9,600				$	9,859				$	259					15,800					464,200
Apr. 1/29			9,600					10,097					497					4,370					475,630
Jul. 1/29			9,600					10,107					507					3,863					476,137
Oct. 1/29			9,600					10,118					518					3,345					476,655
Jan. 1/30			9,600					10,129					529					2,816					477,184
Apr. 1/30			9,600					10,140					540					2,276					477,724
Jul. 1/30			9,600					10,152					552					1,724					478,276
Oct. 1/30			9,600					10,163					563					1,161					478,839
Jan. 1/31			9,600					10,175					575					586					479,414
Apr. 1/31			9,600					10,186	*				586					0					480,000
Totals		$	384,000				$	400,059				$	16,059

*Adjusted for rounding

2. Bond Issue B a. Were the bond B issued at a premium and/or discount?

multiple choice 2

Issued at discount

Issued at premium

Issued at premium & discount

b. Journalize the issuance of bond B on April 1, 2021.

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

d. Interest of how much is paid how often for bond B issued?

e. What is the term of bond B issue?

f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2029.

g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2030.

h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2030, at 97. Record the entries.