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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 (A)
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A (A) Cash Interest Paid (B) Period Interest Expense (C) (D) $770,000 x (E) 7.0% x Amort. Unamortized Period Ending 8.0% 6/12 6/12 (A) - (B) Balance (E) Carrying Value $770,000 + (D) June 1/20 Dec. 1/20 $50,780 $ 820,780 $ 30,800 $ 28,727 $ 2,073 48,707 818,707 Dec. 1/26 30,800 27,668 3,132 17,383 787,383 June 1/27 30,800 27,558 3,242 14,141 784,141 Dec. 1/27 30,800 27,445 3,355 10,786 780,786 June 1/28 30,800 27,328 3,472 7,314 777,314 Dec. 1/28 30,800 27,206 3,594 3,720 773,720 June 1/29 30,800 27,080 3,720 0 770,000 Totals $ 554,400 $ 503,620 $50,780 *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? Issued at discount Issued at premium Issued at premium & discount
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