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

Period Ending	(A) Cash Interest Paid $640,000 6.0% 6/12					(B) Period Interest Expense (E) 5.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $640,000 + (D)
June 1/20																	$	45,931				$	685,931
Dec. 1/20		$	19,200				$	17,148				$	2,052					43,879					683,879
Dec. 1/26			19,200					16,441					2,759					14,867					654,867
June 1/27			19,200					16,372					2,828					12,039					652,039
Dec. 1/27			19,200					16,301					2,899					9,140					649,140
June 1/28			19,200					16,228					2,972					6,168					646,168
Dec. 1/28			19,200					16,154					3,046					3,122					643,122
June 1/29			19,200					16,078					3,122					0					640,000
Totals		$	345,600				$	299,669				$	45,931

*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?

multiple choice 1

• Issued at discount

• Issued at premium

• Issued at premium & discount

b. Journalize the issuance of bond A on June 1, 2020.

• Record the sale of bonds at a premium on the original issue date.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
June 01, 202

c. What is the contract interest rate for the issue bond A?

d. Interest of how much is paid how often for bond A issued?

e. What is the term of bond A issue?

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.)

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

1.Record the payment of interest on bonds.

2.Record the retired bonds.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 01, 2027