Mahalo Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues:
Bond Issue A

Bond Issue B

Answer the following for each bond issue:
a. Were the bonds issued at a premium and/or discount?
b. Journalize the issuance of bond issue A and B on June 1, 2014, and April 1, 2012, respectively.
c. What is the contract interest rate for each bond issue?
d. Interest of how much is paid how often for each bond issue?
e. What is the term of each bond issue?
f. Show how each of the bonds would appear on the balance sheet under long-term liabilities at
July 31, 2020.
g. Calculate the total bond interest expense that would appear on the income statement for the year ended July 31, 2021.
h. Independent of (a) through (g), assume both bond issues were retired on December 1, 2021, at 97. Record theentries.

  • CreatedJanuary 08, 2015
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