Required: 1. Bond Issue A a. Were the bond A issued at a premium and/or discount? Mahalo

Required:
1. Bond Issue A
a. Were the bond A issued at a premium and/or discount?

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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 Cash Interest Paid $700,000 (A) (B) Period Period Ending 8.0% 6/12 Interest Expense (E) 7.0% 6/12 (E) Carrying (C) Amort. (A) (B) (D) Unamortized June 1/20 Balance $46,164 Value $700,000 + (D) $746,164 Dec. 1/20 $ 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 25,053 2,947 12,858 712,858 Dec. 1/27 28,000 24,950 3,050 9,808 709,808 June 1/28 28,000 24,843 3,157 6,651 706,651 Dec. 1/28 28,000 24,733 3,267 3,384 703,384 June 1/29 28,000 24,616 3,384 0 700,000 Totals $504,000 $ 457,836 $46,164 *Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Cash Interest Paid $700,000 (A) (B) Period Period Ending 8.0% 6/12 Interest Expense (E) 7.0% 6/12 (E) Carrying (C) Amort. (A) (B) (D) Unamortized June 1/20 Balance $46,164 Value $700,000 + (D) $746,164 Dec. 1/20 $ 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 25,053 2,947 12,858 712,858 Dec. 1/27 28,000 24,950 3,050 9,808 709,808 June 1/28 28,000 24,843 3,157 6,651 706,651 Dec. 1/28 28,000 24,733 3,267 3,384 703,384 June 1/29 28,000 24,616 3,384 0 700,000 Totals $504,000 $ 457,836 $46,164 *Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Answer rating: 100% (QA)

ANSWER 1 Bond Issue A a Were the bond A issued at a premium andor discount To determine if bond A wa... View the full answer