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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 Period Ending Interest Paid $650,000 x 12.0% x 6/12 (B) Period Interest Expense (E) x 11.0% x (C) Amort. (D) Unamortized 6/12 (A) - (B) June 1/20 Balance $36,550 (E) Carrying Value $650,000 + (D) $ 686,550 Dec. 1/20 $ 39,000 $ 37,760 $ 1,240 35,310 685,310 Dec. 1/26 39,000 36,643 2,357 13,879 663,879 June 1/27 39,000 36,513 2,487 11,392 661,392 Dec. 1/27 39,000 36,377 2,623 8,769 658,769 June 1/28 39,000 36,232 2,768 6,001 656,001 Dec. 1/28 39,000 36,080 2,920 3,081 653,081 June 1/29 Totals 39,000 35,919 3,081 0 650,000 $ 702,000 $ 665,450 $36,550 *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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