Question
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 (6) Period (E) Interest Interest Paid Expense (C) Carrying Period Ending $690,000 9.0% 6/12 (E)x8.0% x 6/12 Amort. (A)-(B) (D) Unamortized June 1/23 Balance Value $690,000+ (D) $43,675 Dec. 1/23 $31,050 $29,347 $733,675 $1,703 41,972 731,972 Dec. 1/29 31,050 28,323 2,727 15,358 705,358 June 1/30 31,050 28,214 2,836 12,522 702,522 Dec. 1/30 31,050 28,101 2,949 9,573 699,573 June 1/31 31,050 27,983 3,067 6,506 696,506 Dec. 1/31 31,050 27,860 3,190 3,316 693,316 June 1/32 31,050 27,734 3,316 0 690,000 Totals $558,900 $515,225 $43,675 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 Issued at premium
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