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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 (A)
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 (B) Period Interest (E) $740,000 x Expense Period 12.0% x (E) x 11.0% Ending 6/12 6/12 (C) Amort. (A) - (B) (D) Carrying Value Balance June $41,610 Unamortized $740,000 + (D) $781,610 1/20 Dec. $ 44,400 $ 42,989 $ 1,411 40,199 780,199 1/20 Dec. 44,400 41,717 2,683 1/26 15,802 755,802 June 44,400 41,569 2,831 12,971 752,971 1/27 Dec. 44,400 41,413 2,987 9,984 749,984 1/27 June 1/28 44,400 41,249 3,151 6,833 746,833 Dec. 1/28 44,400 41,076 3,324 3,509 743,509 June 44,400 40,891 3,509 740,000 1/29 Totals $799,200 $757,590 $41,610 "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 Journal entry worksheet Record the sale of bonds at a premium on the original issue date. Note: Enter debits before credits. Date June 01, 2020 General Journal Debit Credit c. What is the contract interest rate for the issue bond A? Contract interest rate % d. Interest of how much is paid how often for bond A issued? Interest paid e. What is the term of bond A issue? Term of each bond issue year term > 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.) Balance Sheet (Partial) Non-current liabilities $ 0 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
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