Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules...
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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 $ 26,600 Period Ending June 1/20 Dec. 1/20 (A) Cash Interest Paid $760,000 x 7.0% x 6/12 (B) Period Interest Expense (E) × 6.0% × 6/12 (C) Amort. (A) (D) Unamortized - (B) Balance $52,263 (E) Carrying Value $760,000 + (D) $ 812,263 $ 24,368 $ 2,232 50,031 810,031 Dec. 1/26 26,600 23,418 3,182 17,403 777,403 June 1/27 26,600 23,322 3,278 14,125 774,125 Dec. 1/27 26,600 23,224 3,376 10,749 770,749 June 1/28 26,600 23,122 3,478 7,271 767,271 Dec. 1/28 26,600 23,018 3,582 3,689 763,689 June 1/29 26,600 22,911 3,689 0 760,000 Totals $ 478,800 $ 426,537 $52,263 *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? Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A $ 26,600 Period Ending June 1/20 Dec. 1/20 (A) Cash Interest Paid $760,000 x 7.0% x 6/12 (B) Period Interest Expense (E) × 6.0% × 6/12 (C) Amort. (A) (D) Unamortized - (B) Balance $52,263 (E) Carrying Value $760,000 + (D) $ 812,263 $ 24,368 $ 2,232 50,031 810,031 Dec. 1/26 26,600 23,418 3,182 17,403 777,403 June 1/27 26,600 23,322 3,278 14,125 774,125 Dec. 1/27 26,600 23,224 3,376 10,749 770,749 June 1/28 26,600 23,122 3,478 7,271 767,271 Dec. 1/28 26,600 23,018 3,582 3,689 763,689 June 1/29 26,600 22,911 3,689 0 760,000 Totals $ 478,800 $ 426,537 $52,263 *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?
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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