Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Period Ending June 1/23 (A) Cash Interest Paid $610,000 x 9.0% x 6/12 (B) Period Interest Expense (E) x 8.0% x 6/12 (c) Amort. (D) Unamortized (A) - (B) Balance $38,611 (E) Carrying Value $610,000 + (D) $ 648,611 Dec. 1/23 $ 27,450 $ 25,944 $ 1,506 37,105 647,105 Dec. 1/29 27,450 25,040 2,410 13,578 623,578 June 1/30 27,450 24,943 2,507 11,071 621,071 Dec. 1/30 27,450 24,843 2,607 8,464 618,464 June 1/31 27,450 24,739 2,711 5,753 615,753 Dec. 1/31 27,450 24,630 2,820 2,933 612,933 June 1/32 Totals 27,450 24,517 2,933 0 610,000 $ 494,100 $ 455,489 $38,611 "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? O Issued at discount O Issued at premium O Issued at premium & 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 Period Ending June 1/23 (A) Cash Interest Paid $610,000 x 9.0% x 6/12 (B) Period Interest Expense (E) x 8.0% x 6/12 (c) Amort. (D) Unamortized (A) - (B) Balance $38,611 (E) Carrying Value $610,000 + (D) $ 648,611 Dec. 1/23 $ 27,450 $ 25,944 $ 1,506 37,105 647,105 Dec. 1/29 27,450 25,040 2,410 13,578 623,578 June 1/30 27,450 24,943 2,507 11,071 621,071 Dec. 1/30 27,450 24,843 2,607 8,464 618,464 June 1/31 27,450 24,739 2,711 5,753 615,753 Dec. 1/31 27,450 24,630 2,820 2,933 612,933 June 1/32 Totals 27,450 24,517 2,933 0 610,000 $ 494,100 $ 455,489 $38,611 "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? O Issued at discount O Issued at premium O Issued at premium & discount

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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