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 $600,000 10.0% 6/12					(B) Period Interest Expense (E) 9.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $600,000 + (D)
June 1/20																	$	36,480				$	636,480
Dec. 1/20		$	30,000				$	28,642				$	1,358					35,122					635,122
Dec. 1/26			30,000					27,696					2,304					13,168					613,168
June 1/27			30,000					27,593					2,407					10,761					610,761
Dec. 1/27			30,000					27,484					2,516					8,245					608,245
June 1/28			30,000					27,371					2,629					5,616					605,616
Dec. 1/28			30,000					27,253					2,747					2,869					602,869
June 1/29			30,000					27,131					2,869					0					600,000
Totals		$	540,000				$	503,520				$	36,480

*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. 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 Bond Issue B

Period Ending	(A) Cash Interest Paid $460,000.0 10.0% 3/12					(B) Period Interest Expense (E) 10.5% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $460,000 (D)
Apr. 1/18																	$	14,134				$	445,866
Jul. 1/18		$	11,500				$	11,704				$	204					13,930					446,070
Apr. 1/26			11,500					11,955					455					4,101					455,899
Jul. 1/26			11,500					11,967					467					3,634					456,366
Oct. 1/26			11,500					11,980					480					3,154					456,846
Jan. 1/27			11,500					11,992					492					2,662					457,338
Apr. 1/27			11,500					12,005					505					2,157					457,843
Jul. 1/27			11,500					12,018					518					1,639					458,361
Oct. 1/27			11,500					12,032					532					1,107					458,893
Jan. 1/28			11,500					12,046					546					561					459,439
Apr. 1/28			11,500					12,061	*				561					0					460,000
Totals		$	460,000				$	474,134				$	14,134

*Adjusted for rounding

2. Bond Issue B a. Were the bond B issued at a premium and/or discount?

multiple choice 2

Issued at discount

Issued at premium

Issued at premium & discount

b. Journalize the issuance of bond B on April 1, 2018. c. What is the contract interest rate for the issue bond B? d. Interest of how much is paid how often for bond B issued?

e. What is the term of bond B issue? f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2026. g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027. h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries.