Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mahalo Boat Adventure Inc. has a July 3 1 year - end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue

Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Period Ending (A) Cash Interest Paid $730,000\times 11.0%\times 6/12(B) Period Interest Expense (E)\times 10.0%\times 6/12(C) Amort. (A)(B)(D) Unamortized Balance (E) Carrying Value $730,000+(D) June 1/23 $ 42,667 $ 772,667 Dec. 1/23 $ 40,150 $ 38,633 $ 1,51741,150771,150 Dec. 1/2940,15037,4262,72415,799745,799 June 1/3040,15037,2902,86012,939742,939 Dec. 1/3040,15037,1473,0039,936739,936 June 1/3140,15036,9973,1536,783736,783 Dec. 1/3140,15036,8393,3113,472733,472 June 1/3240,15036,6783,4720730,000 Totals $ 722,700 $ 680,033 $ 42,667*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? multiple choice 1 Issued at discount Issued at premium Issued at premium & discount b. Journalize the issuance of bond A on June 1,2023. c. What is the contract interest rate for the issue bond A? d. Interest of how much is paid how often for bond A issued? e. What is the term of bond A issue? f. Show how bond A would appear on the balance sheet under non-current liabilities at July 31,2029.(Enter all amounts as positive values.) g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31,2030. h. Independent of (a) through (g), assume bond A issues were retired on December 1,2030, at 97. Record the entries Bond Issue B Period Ending (A) Cash Interest Paid $590,000.0\times 11.0%\times 3/12(B) Period Interest Expense (E)\times 12.0%\times 3/12(C) Amort. (A)(B)(D) Unamortized Balance (E) Carrying Value $590,000(D) Apr. 1/21 $ 34,094 $ 555,906 Jul. 1/21 $ 16,225 $ 16,677 $ 45233,642556,358 Apr. 1/2916,22517,3561,13110,351579,649 Jul. 1/2916,22517,3891,1649,187580,813 Oct. 1/2916,22517,4241,1997,988582,012 Jan. 1/3016,22517,4601,2356,753583,247 Apr. 1/3016,22517,4971,2725,481584,519 Jul. 1/3016,22517,5361,3114,170585,830 Oct. 1/3016,22517,5751,3502,820587,180 Jan. 1/3116,22517,6151,3901,430588,570 Apr. 1/31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

4th edition

978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730

More Books

Students also viewed these Accounting questions

Question

Part C Why is it advantageous to produce plutonium-239?

Answered: 1 week ago