3 Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization...
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3 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 Period Interest Expense (C) (D) (E) Carrying value Period Ending $700,000 (E) 7.0% x Amort. 8.0% x 6/12 Unamortized $700,000+ (A) (B) Balance June 1/20 Dec. 1/20 $46,164 $746,164 $ 28,000 $ 26,116 $ 1,884 44,280 744,280 Dec. 1/26 28,000 25,153 2,847 15,805 715,805 June 1/27 28,000 25,853 2,947 12,858 712,858 Dec. 1/27 28,000 24,950 3,050 9,808 789,888 June 1/28 28,000 24,843 3,157 6,651 786,651 Dec. 1/28 28,000 24,733 3,267 3,384 783,384 June 1/29 28,000 24,616 3,384 788,000 Totals $504,000 $457,836 $45,164 "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. No 1 Date June 01, 2020 Answer is not complete. General Journal Cash Premium on bonds payable Bonds payable c. What is the contract interest rate for the issue bond A? Answer is complete and correct. Contract interest d. Interest of how much is paid how often for bond A issued? Answer is not complete. Interest paid e. What is the term of bond A issue? Term of each bond issue year term Debit Credit 746,164 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.) Non-cumentaties Answer is not complete. Balance Sheet (Partial) Bonds payable, 11.0%, due June 1, 2029 Add: Premium on bonds payable 0 g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027. Answer is not complete. 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 No Answer is not complete. General Journal 3 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 Period Interest Expense (C) (D) (E) Carrying value Period Ending $700,000 (E) 7.0% x Amort. 8.0% x 6/12 Unamortized $700,000+ (A) (B) Balance June 1/20 Dec. 1/20 $46,164 $746,164 $ 28,000 $ 26,116 $ 1,884 44,280 744,280 Dec. 1/26 28,000 25,153 2,847 15,805 715,805 June 1/27 28,000 25,853 2,947 12,858 712,858 Dec. 1/27 28,000 24,950 3,050 9,808 789,888 June 1/28 28,000 24,843 3,157 6,651 786,651 Dec. 1/28 28,000 24,733 3,267 3,384 783,384 June 1/29 28,000 24,616 3,384 788,000 Totals $504,000 $457,836 $45,164 "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. No 1 Date June 01, 2020 Answer is not complete. General Journal Cash Premium on bonds payable Bonds payable c. What is the contract interest rate for the issue bond A? Answer is complete and correct. Contract interest d. Interest of how much is paid how often for bond A issued? Answer is not complete. Interest paid e. What is the term of bond A issue? Term of each bond issue year term Debit Credit 746,164 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.) Non-cumentaties Answer is not complete. Balance Sheet (Partial) Bonds payable, 11.0%, due June 1, 2029 Add: Premium on bonds payable 0 g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027. Answer is not complete. 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 No Answer is not complete. General Journal
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Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
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