Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond Bond Issue A (A) Cash Interest

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond Bond Issue A (A) Cash Interest Paid $690,000 9.8% * 6/12 (8) Period Interest Expense (E)K BOX 6/12 (C) Amort. (A) (8) (F) Carrying Value $690,000 (D) $ 733,675 731,972 (D) Un amortized Balance $43,675 41,972 Period Ending June 1/20 Dec. 1/20 $ 31,85e $ 29, 347 $ 1,703 Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 Totals 31,050 31,050 31, ose 31,05 31,050 31,050 $ 558,900 28,323 28,214 28, 101 27,983 27,860 27,734 $ 515,225 2,727 2,836 2,949 3,867 3, 190 3,316 $43,675 15,358 12,522 9,573 6,506 3,316 705,358 702,522 699,573 696,506 693,316 690,000 "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 O Issued at premium & discount c. What is the contract interest rate for the issue bond A? contradiererate 9 % d. Interest of how much is paid how often for bond A issued? Interest paid S 31,050 Semi-annually e. What is the term of bond A issue? To och bond 9 year term f. Show how bond A would appear on the balance sheet under non-current liabilities at July 31, 2026. (Enter all am values.) Balance Sheet (Partial) Non-current liabilities Bonds payable, 110%, due June 1, 2029 Add Premium on bonds payable 0 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 View transaction list View journal entry worksheet Debit Credit No Date General Journal 1. December 01, 2027 Cash Bonds payable Premium on bonds payable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applying IFRS Standards

Authors: Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas

4th Edition

1119159229, 9781119159223

More Books

Students also viewed these Accounting questions

Question

1. Offer surprise rewards for good participation in class.

Answered: 1 week ago

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago