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 $760,000 7.0% 6/12					(B) Period Interest Expense (E) 6.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $760,000 + (D)
June 1/20																	$	52,263				$	812,263
Dec. 1/20		$	26,600				$	24,368				$	2,232					50,031					810,031
Dec. 1/26			26,600					23,418					3,182					17,403					777,403
June 1/27			26,600					23,322					3,278					14,125					774,125
Dec. 1/27			26,600					23,224					3,376					10,749					770,749
June 1/28			26,600					23,122					3,478					7,271					767,271
Dec. 1/28			26,600					23,018					3,582					3,689					763,689
June 1/29			26,600					22,911					3,689					0					760,000
Totals		$	478,800				$	426,537				$	52,263

*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 $620,000.0 7.0% 3/12					(B) Period Interest Expense (E) 8.0% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $620,000 (D)
Apr. 1/18																	$	42,401				$	577,599
Jul. 1/18		$	10,850				$	11,552				$	702					41,699					578,301
Apr. 1/26			10,850					12,147					1,297					11,353					608,647
Jul. 1/26			10,850					12,173					1,323					10,030					609,970
Oct. 1/26			10,850					12,199					1,349					8,681					611,319
Jan. 1/27			10,850					12,226					1,376					7,305					612,695
Apr. 1/27			10,850					12,254					1,404					5,901					614,099
Jul. 1/27			10,850					12,282					1,432					4,469					615,531
Oct. 1/27			10,850					12,311					1,461					3,008					616,992
Jan. 1/28			10,850					12,340					1,490					1,518					618,482
Apr. 1/28			10,850					12,368	*				1,518					0					620,000
Totals		$	434,000				$	476,401				$	42,401

*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.