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 11.0% 6/12					(B) Period Interest Expense (E) 10.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $730,000 + (D)
June 1/20																	$	42,667				$	772,667
Dec. 1/20		$	40,150				$	38,633				$	1,517					41,150					771,150
Dec. 1/26			40,150					37,426					2,724					15,799					745,799
June 1/27			40,150					37,290					2,860					12,939					742,939
Dec. 1/27			40,150					37,147					3,003					9,936					739,936
June 1/28			40,150					36,997					3,153					6,783					736,783
Dec. 1/28			40,150					36,839					3,311					3,472					733,472
June 1/29			40,150					36,678					3,472					0					730,000
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, 2020.

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, 2026. (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, 2027.

h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries

Bond Issue B

Period Ending	(A) Cash Interest Paid $590,000.0 11.0% 3/12					(B) Period Interest Expense (E) 12.0% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $590,000 (D)
Apr. 1/18																	$	34,094				$	555,906
Jul. 1/18		$	16,225				$	16,677				$	452					33,642					556,358
Apr. 1/26			16,225					17,356					1,131					10,351					579,649
Jul. 1/26			16,225					17,389					1,164					9,187					580,813
Oct. 1/26			16,225					17,424					1,199					7,988					582,012
Jan. 1/27			16,225					17,460					1,235					6,753					583,247
Apr. 1/27			16,225					17,497					1,272					5,481					584,519
Jul. 1/27			16,225					17,536					1,311					4,170					585,830
Oct. 1/27			16,225					17,575					1,350					2,820					587,180
Jan. 1/28			16,225					17,615					1,390					1,430					588,570
Apr. 1/28			16,225					17,655	*				1,430					0					590,000
Totals		$	649,000				$	683,094				$	34,094

*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, 2018.

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, 2026.

g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027.

h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries.