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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 June 1/20 Dec. 1/20 (A) Cash Interest Paid $620,000 8.0% x 6/12 (B) Period Interest (E) Carrying Expense (E) 7.0% x 6/12 (C) Amort. (D) Unamortized (A) - (B) Balance $40,888 Value $620,000 + (D) $660,888 $ 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 June 1/29 24,800 21,805 2,995 622,995 620,000 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.) h. Independent of (a) through (g), assume bond 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 22,099 Premium on bonds payable 2,701 Common shares 24,800 2 December 01, 202 Bonds payable Premium on bonds payable Gain on retirement of bonds Cash 620,000 8,685 27,285 601,400 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 complete but not entirely correct. Balance Sheet (Partial) Non-current liabilities Bonds payable, 11.0%, due June 1, 2029 Add: Premium on bonds payable $ 620,000 10,486 $630,486
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