Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues:
Please kindly finish both Bond A and Bond B!! I'll give you a thumbs up!
Online Assignment #2 Saved Help Save & Exit Submit Check my work 6 Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A References (c) Amort. (A) - (B) (A) (B) Cash Period Interest Interest Paid Expense $730,000 x (E) * 10.0% Period Ending 11.0 x 6/12 x 6/12 June 1/20 Dec. 1/20 $ 40, 150 $ 38,633 : : Dec. 1/26 40,150 37,426 June 1/27 40,150 37,290 Dec. 1/27 40, 150 37, 147 June 1/28 40, 150 36,997 Dec. 1/28 40, 150 36,839 June 1/29 40,150 36,678 Totals $ 722,700 $ 680,033 $ 1,517 . 2,724 2,860 3,693 3, 153 3,311 3,472 $42,667 (E) ( Carrying (D) Value Unamortized $730,000 + Balance ( (D) $42,667 $ 772,667 41,150 771, 150 : 15, 799 745, 799 12,939 742,939 9,936 739,936 6,783 736, 783 3,472 733,472 @ 730,000 -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 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 772,667 Premium on bonds payable Bonds payable 42,667 730,000 c. What is the contract interest rate for the issue bond A? Contract interest rate 11% d. Interest of how much is paid how often for bond A issued? Interest paid Semi-annually e. What is the term of bond A issue? Term of each bond issue 11 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 $ 760,000 Bonds payable, 11.0%, due June 1, 2029 Add: Premium on bonds payable $ 760,000 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 Journal entry worksheet Record the payment of interest on bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 01, 2027 Record entry Clear entry View general journal h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries. View transaction list Journal entry worksheet Record the interest paid on bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 01, 2027 Record entry Clear entry View general journal h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries View transaction list Journal entry worksheet Record the retired bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 01, 2027 Record entry Clear entry View general journal
