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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
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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