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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) Cash
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 Interest Paid $580,000 X 12. 0% X 6/12 (B) Period Interest Expense (E) X 11.0% X 6/12 (C) Amort. (A) - (B) (E) Carrying Value $580, 000 + (D) S 612, 614 611, 508 (D) Unamortized Balance $32, 614 31, 508 Period Ending June 1/20 Dec. 1/20 $ 1, 106 Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 Totals $ 34, 800 : 34, 800 34, 800 34, 800 34, 800 34, 800 34, 800 $ 626, 100 $ 33,694 : 32, 697 32, 581 32, 459 32, 330 32, 195 32, 050 S 593, 786 2, 103 2, 219 2, 341 2, 470 2, 605 2,750 12, 385 10,166 7, 825 5, 355 2, 750 0 592, 385 590, 166 587, 825 585, 355 582, 750 580,000 $32,614 *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 b. Journalize the issuance of bond A on June 1, 2020. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 June 01, 2020 Cash 34,800 77 Bonds payable Premium on bonds payable 77 Common shares Discount on bonds payable Interest payable c. What is the contract interest rate for the issue bond A? Contract interest rate % d. Interest of how much is paid how often for bond A issued? Interest paid e. What is the term of bond A issue? Term of each bond issue year term 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.) Balance Sheet (Partial) Non-current liabilities Bonds payable, 11.0%, due June 1, 2029 Add: Premium on bonds payable $ g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027 Total bond interest expense h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries View transaction list
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