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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
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 Cash (A) (B) Period Interest Interest Paid $620,000 8.0% x 6/12 Expense (E) x 7.0 % x 6/12 (C) Amort. (D) Unamortized (A) - (B) Balance June 1/20 $40,888 (E) Carrying Value $620,000 + (D) $ 660,888 Dec. 1/20 $ 24,800 $ 23,131 $ 1,669 39,219 659,219 Dec. 1/26 24,800 22,278 2,522 13,996 633,996 June 1/27 24,800 22,190 2,610 11,386 631,386 Dec. 1/27 24,800 22,099 2,701 8,685 628,685 June 1/28 24,800 22,004 2,796 5,889 625,889 Dec. 1/28 24,800 21,906 2,894 2,995 622,995 June 1/29 24,800 21,805 2,995 0 620,000 Totals $446,400 $405,512 $40,888 *Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.) d. Interest of how much is paid how often for bond A issued? Answer is not complete. Interest paid Semi-annually 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.) Answer is not complete. Balance Sheet (Partial) Non-current liabilities Bonds payable, 11.0%, due June 1, 2029 $ 620,000 Add: Premium on bonds payable $ 620,000 g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027. Total bond interest expense h. Independent of (a) throug Assessment Tool iFrame A issues were retired on December 1, 2027, at 97. Record the entries Answer is not complete. No Date General Journal Debit Credit 1 December 01, 202 Bond interest expense Premium on bonds payable Cash 2 December 01, 202 Bonds payable 620,000 Premium on bonds payable 8,685 Gain on retirement of bonds 27,285 Cash 601,400
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