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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 Period Ending

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 $630,000 7.0% 6/12 (B) Period Interest Expense (E) 6.0% 6/12 (C) Amort. (A) (B) (D) Unamortized Balance (E) Carrying Value $630,000 + (D)
June 1/20 $ 43,324 $ 673,324
Dec. 1/20 $ 22,050 $ 20,200 $ 1,850 41,474 671,474
Dec. 1/26 22,050 19,412 2,638 14,426 644,426
June 1/27 22,050 19,333 2,717 11,709 641,709
Dec. 1/27 22,050 19,251 2,799 8,910 638,910
June 1/28 22,050 19,167 2,883 6,027 636,027
Dec. 1/28 22,050 19,081 2,969 3,058 633,058
June 1/29 22,050 18,992 3,058 0 630,000
Totals $ 396,900 $ 353,576 $ 43,324

*Adjusted for rounding

image text in transcribed

image text in transcribed

f. Show how bond A would appear on the balance sheet under non-current liabilities at July 31, 2026. (Enter all amounts as positiv values.) Balance Sheet (Partial) Non-current liabilities Bonds payable, 11.0%, due June 1, 2029 $ Add: Premium on bonds payable 630,000 $ 630,000 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 View journal entry worksheet No Date General Journal Debit Credit 1 December 01, 2027 No Transaction Recorded

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