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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 Were the bond A issued at a premium andor discount?
Issued at discount
Issued at premium
Issued at premium & discount
b Journalize the issuance of bond A on June
Journal entry worksheet
Record the sale of bonds at a premium on the original issue date.
Note: Enter debits before credits.
c What is the contract interest rate for the issue bond
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.
Balance Sheet Parcial:
Noncurentl liabilities
Bonds payable, due June
Add: Premium on bonds payable
g Calculate the total bond A interest expense that would appear on the income statement for the year ended July
h Independent of a through g assume bond A issues were retired on December at Record the entries there are journal entries for this one
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