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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) (B) Cash Period Period Ending June 1/20 Dec. 1/20 Interest Paid $590,000 x 11.0% x 6/12 Interest (E) Carrying Expense (E) x 10.0% * 6/12 (C) Amort. (D) Unamortized (A) - (B) Balance Value $590,000+ (D) $34,484 $624,484 $ 32,450 $ 31,224 $ 1,226 33,258 623,258 Dec. 1/26 32,450 30,249 2,201 12,771 602,771 June 1/27 32,450 30,139 2,311 10,460 600,460 Dec. 1/27 32,450 30,023 2,427 8,033 598,033 June 1/28 32,450 29,902 2,548 5,485 595,485 Dec. 1/28 32,450 29,774 2,676 2,809 592,809 June 1/29 32,450 29,641 2,809 0 590,000 Totals $ 584,100 $549,616 $34,484 "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? O Issued at discount O Issued at premium O Issued at premium & discount b. Journalize the issuance of bond A on June 1, 2020. View transaction list Journal entry worksheet < 1 Record the sale of bonds at a premium on the original issue date.
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