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 $640,000 6.0% 6/12					(B) Period Interest Expense (E) 5.0% 6/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $640,000 + (D)
June 1/20																	$	45,931				$	685,931
Dec. 1/20		$	19,200				$	17,148				$	2,052					43,879					683,879
Dec. 1/26			19,200					16,441					2,759					14,867					654,867
June 1/27			19,200					16,372					2,828					12,039					652,039
Dec. 1/27			19,200					16,301					2,899					9,140					649,140
June 1/28			19,200					16,228					2,972					6,168					646,168
Dec. 1/28			19,200					16,154					3,046					3,122					643,122
June 1/29			19,200					16,078					3,122					0					640,000
Totals		$	345,600				$	299,669				$	45,931

*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 $500,000.0 6.0% 3/12					(B) Period Interest Expense (E) 6.5% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $500,000 (D)
Apr. 1/18																	$	18,278				$	481,722
Jul. 1/18		$	7,500				$	7,828				$	328					17,950					482,050
Apr. 1/26			7,500					8,041					541					4,655					495,345
Jul. 1/26			7,500					8,049					549					4,106					495,894
Oct. 1/26			7,500					8,058					558					3,548					496,452
Jan. 1/27			7,500					8,067					567					2,981					497,019
Apr. 1/27			7,500					8,077					577					2,404					497,596
Jul. 1/27			7,500					8,086					586					1,818					498,182
Oct. 1/27			7,500					8,095					595					1,223					498,777
Jan. 1/28			7,500					8,105					605					618					499,382
Apr. 1/28			7,500					8,118	*				618					0					500,000
Totals		$	300,000				$	318,278				$	18,278

*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.