Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Posted this before and they got it wrong. So it's not debit bond interest expense 19103, debit premium on bonds payable 3397 and credit cash

Posted this before and they got it wrong. So it's not debit bond interest expense 19103, debit premium on bonds payable 3397 and credit cash 22500. The following journal entries I already have are correct. Thanks.

image text in transcribed

image text in transcribed

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 $750,000 x 6.0% X 6/12 Period Interest Expense (E) X 5.0% 6/12 (C) Amort. (A) - (B) (E) Carrying Value $750,000 + (D) $ 803, 825 801,421 (D) Unamortized Balance $53,825 51,421 Period Ending June 1/20 Dec. 1/20 $ 22,500 $ 20,096 $ 2,404 Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 Totals 22,500 22,500 22,500 22,500 22,500 22,500 $ 405,000 19,266 19,186 19,103 19,018 18,931 18,839 $ 351, 175 3,234 3,314 3,397 3,482 3,569 3,661 $53,825 17,423 14,109 10,712 7,230 3,661 0 767,423 764,109 760,712 757,230 753,661 750,000 *Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.) h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries View transaction list Journal entry worksheet Record the payment of interest on bonds. Note: Enter debits before credits. Debit Credit Date General Journal December 01, 2027 Bond interest expense Premium on bonds payable Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Authors: Patrick A. Gaughan

3rd Edition

1119647916, 9781119647911

More Books

Students also viewed these Accounting questions