Bond Issue B

Period Ending	(A) Cash Interest Paid $580,000.0 10.0% 3/12					(B) Period Interest Expense (E) 10.5% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $580,000 (D)
Apr. 1/21																	$	17,822				$	562,178
Jul. 1/21		$	14,500				$	14,757				$	257					17,565					562,435
Apr. 1/29			14,500					15,074					574					5,172					574,828
Jul. 1/29			14,500					15,089					589					4,583					575,417
Oct. 1/29			14,500					15,105					605					3,978					576,022
Jan. 1/30			14,500					15,121					621					3,357					576,643
Apr. 1/30			14,500					15,137					637					2,720					577,280
Jul. 1/30			14,500					15,154					654					2,066					577,934
Oct. 1/30			14,500					15,171					671					1,395					578,605
Jan. 1/31			14,500					15,188					688					707					579,293
Apr. 1/31			14,500					15,207	*				707					0					580,000
Totals		$	580,000				$	597,822				$	17,822

*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.