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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
Period Ending
June 1/23
Dec. 1/23
$610,000 x
9.0% x 6/12
(A)
Cash
Interest Paid
(B)
Period
Interest
Expense
(E) x 8.0% x
(c)
Amort.
(D)
Unamortized
6/12
(A) - (B)
Balance
$38,611
$ 27,450
$ 25,944
$ 1,506
37,105
(E)
Carrying
Value
$610,000 +
(D)
$ 648,611
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
Ө
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?
Issued at discount
O Issued at premium
◇ Issued at premium & discount
Transcribed Image Text: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 Dec. 1/23 $610,000 x 9.0% x 6/12 (A) Cash Interest Paid (B) Period Interest Expense (E) x 8.0% x (c) Amort. (D) Unamortized 6/12 (A) - (B) Balance $38,611 $ 27,450 $ 25,944 $ 1,506 37,105 (E) Carrying Value $610,000 + (D) $ 648,611 647,105 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 Ө 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? Issued at discount O Issued at premium ◇ Issued at premium & discount
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