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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 yearend. It showed the following partial
amortization schedules regarding two bond issues:
Bond Issue A
Adjusted for rounding
For all requirements, do not round intermediate calculations. Round the final
answers to the nearest whole dollar.
Required:
Bond Issue A
a Were the bond A issued at a premium andor discount?
multiple choice
Issued at discount
Issued at premium
Issued at premium & discount
b Journalize the issuance of bond A on June
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 noncurrent liabilities
at July Enter all amounts as positive values.
g Calculate the total bond Ainterest expense that would appear on the income state
ment for the year ended July
h Independent of a through g assume bond Aissues were retired on December
at Record the entries.
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