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 $700,000 8.0% 6/12					(B) Period Interest Expense (E) 7.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $700,000 + (D)
June 1/23																	$	46,164				$	746,164
Dec. 1/23		$	28,000				$	26,116				$	1,884					44,280					744,280
Dec. 1/29			28,000					25,153					2,847					15,805					715,805
June 1/30			28,000					25,053					2,947					12,858					712,858
Dec. 1/30			28,000					24,950					3,050					9,808					709,808
June 1/31			28,000					24,843					3,157					6,651					706,651
Dec. 1/31			28,000					24,733					3,267					3,384					703,384
June 1/32			28,000					24,616					3,384					0					700,000
Totals		$	504,000				$	457,836				$	46,164

*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 $560,000.0 8.0% 3/12					(B) Period Interest Expense (E) 8.5% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $560,000 (D)
Apr. 1/21																	$	18,736				$	541,264
Jul. 1/21		$	11,200				$	11,502				$	302					18,434					541,566
Apr. 1/29			11,200					11,779					579					5,102					554,898
Jul. 1/29			11,200					11,792					592					4,510					555,490
Oct. 1/29			11,200					11,804					604					3,906					556,094
Jan. 1/30			11,200					11,817					617					3,289					556,711
Apr. 1/30			11,200					11,830					630					2,659					557,341
Jul. 1/30			11,200					11,843					643					2,016					557,984
Oct. 1/30			11,200					11,857					657					1,359					558,641
Jan. 1/31			11,200					11,871					671					688					559,312
Apr. 1/31			11,200					11,888	*				688					0					560,000
Totals		$	448,000				$	466,736				$	18,736

*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.