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 $690,000 9.0% 6/12					(B) Period Interest Expense (E) 8.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $690,000 + (D)
June 1/20																	$	43,675				$	733,675
Dec. 1/20		$	31,050				$	29,347				$	1,703					41,972					731,972
Dec. 1/26			31,050					28,323					2,727					15,358					705,358
June 1/27			31,050					28,214					2,836					12,522					702,522
Dec. 1/27			31,050					28,101					2,949					9,573					699,573
June 1/28			31,050					27,983					3,067					6,506					696,506
Dec. 1/28			31,050					27,860					3,190					3,316					693,316
June 1/29			31,050					27,734					3,316					0					690,000
Totals		$	558,900				$	515,225				$	43,675

gnment #2 Saved Help Save & Exit Submit Check my work 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 $690,000 X 9.08 * 6/12 (B) Period Interest Expense (E) * 8.0% x 6/12 (C) Amort. (A) - (B) Period Ending June 1/20 Dec. 1/20 $ 31,050 (D) Unamortized Balance $43, 675 41,972 : 15, 358 12,522 9,573 6,506 3,316 0 $ 29, 347 : 28, 323 28,214 28, 101 27,983 27,860 27, 734 $ 515,225 Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 Totals (E) Carrying Value $ 690,000 + (D) $ 733, 675 731,972 : 705,358 702,522 699,573 696,506 693, 316 690,000 $ 1,703 : 2,727 2,836 2,949 3,067 3,190 3,316 $43,675 31,050 31,050 31,050 31,050 31,050 31,050 $ 558, 900 *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 gnment #2 Saved Help Save & Exit Submit Check my work Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 31,050 31,050 31,050 31,050 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 3,067 3,190 3,316 $43,675 15, 358 12,522 9,573 6,506 3,316 0 705, 358 702,522 699,573 696,506 693,316 690,000 Totals *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 gnment #2 Saved Help Save & Exit Submit Check my work b. Journalize the issuance of bond A on June 1, 2020. View transaction list Journal entry worksheet Record the payment of interest on bonds. Note: Enter debits before credits. Credit Date General Journal December 01, 2027 Bonds payable Premium on bonds payable Cash Gain on retirement of bonds Debit 690,000 9,575 669,300 30.275 gnment #2 Saved Saved Help Save & Exit Submit Check my work Bond Issue B (A) (B) Cash Period Interest Interest Paid Expense $550,000.0 * (E) * 9.5% X 9.0% X 3/12 3/12 (C) Amort. (A) - (B) $ 12,375 Period Ending Apr. 1/18 Jul. 1/18 : Apr. 1/26 Jul. 1/26 Oct. 1/26 Jan. 1/27 Apr. 1/27 Jul. 1/27 Oct. 1/27 Jan. 1/28 Apr. 1/28 Totals 12,375 12,375 12,375 12,375 12,375 12,375 12,375 12,375 12,375 $ 495,000 $ 12,644 : 12,932 12,945 12,958 12,972 12,986 13,001 13,016 13,031 13,049* $ 512,627 $ 269 : 557 570 583 597 611 626 641 656 674 $17,627 (D) Unamortized Balance $17,627 17,358 : 4,958 4,388 3,805 3,208 2,597 1,971 1,330 674 0 (E) Carrying Value $550,000 (D) $ 532, 373 532, 642 : 545, 042 545,612 546,195 546,792 547, 403 548, 029 548,670 549, 326 550,000 *Adjusted for rounding 2. Bond Issue B a. Were the bond B issued at a premium and/or discount? Issued at discount gnment #2 Saved Help Save & Exit Submit Check my work b. Journalize the issuance of bond B on April 1, 2018. View transaction list Journal entry worksheet Record the Issuance of bonds at a discount. Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2018 Record entry Clear entry View general journal Saved gnment #2 Help Save & Exit Submit Check my work c. What is the contract interest rate for the issue bond B? Contract interest rate % d. Interest of how much is paid how often for bond B issued? Interest paid e. What is the term of bond B issue? Term of each bond issue year term gnment #2 Saved Help Save & Exit Submit Check my work f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2026. Balance Sheet (Partial) Non-current liablities Bonds payable, 9.5%, due April 1, 2028 $ Add: Discount on bonds payable 690,000 17,177 $ 707,117 g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027. Total bond interest expense gnment #2 Saved Help Save & Exit Submit Check my work 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. Debit Credit Date General Journal December 01, 2027 Bonds payable Premium on bonds payable 690,000 9,575 669,300 30,275 Record entry Clear entry View general journal