Long$-$term Liabilities:

$$

$$

Bonds Payable

$$700,000$

Less: Discount on Bonds Payable

$(84,000)$

$$616,000$Hawaii HamburgersHawaii$$Hamburgers

issued

$99\%,$

$10-$year bonds payable at

$8585$

on December$31,$

$20252025.$

At December$31,$

$20272027,$

Hawaii HamburgersHawaii$$Hamburgers

reported the bonds payable as$$ follows:

View the bonds payable.

LOADING...

Hawaii HamburgersHawaii$$Hamburgers

pays semiannual interest each June $30$ and December $31.($Assume bonds payable are amortized using the$$ straight$-$line amortization$$ method.$)$

Read the requirements.

LOADING...

Answer the following questions about

Hawaii HamburgersHawaii$$Hamburgers$\text{'}$

bonds$$ payable:

a$.$

What is the maturity value of the$$ bonds?

b$.$

What is the carrying amount of the bonds at December$31,$

$20272027?$

c$.$

What is the semiannual cash interest payment on the$$ bonds?

d$.$

How much interest expense should the company record each$$ year?

$2.$

Record the June$30,$

$20272027,$

semiannual interest payment and amortization of discount.

Question content area bottom

Part $1$

Requirement $1.$ Answer the following questions about

Hawaii HamburgersHawaii$$Hamburgers$\text{'}$

bonds$$ payable:

a$.$

What is the maturity value of the bonds?

$$700,000$

Part $2$

b$.$

What is the carrying amount of the bonds at December $31,2027?$