Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues:Bond Issue APeriod EndingJune 1/20Dec. 1/20:Dec. 1/26June 1/27Dec. 1/27June 1/28Dec. 1/28June 1/29Totals(A)CashInterestPaid$700,0008.0% × 6/12$ 28,000:28,00028,00028,000(B)PeriodInterestExpense(E) x 7.0% x6/12$ 26,11625, 15325,05324,95024,84324, 73324,616$504,000 $ 457,83628,00028,00028,000(C)Amort.(A) (B)$ 1,884:2,8472,9473,0503,1573,2673,384$46,164(D)UnamortizedBalance$46,16444,280:15,80512,8589,8086,6513,3840(E)CarryingValue$700,000 +(D)$ 746, 164744,280715,805712,858709,808706,651703,384700,000*Adjusted for rounding(For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

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 1/20 Dec. 1/20 ⠀ Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 Totals (A) Cash Interest Paid $700,000 × (E) x 7.0% × 8.0% × 6/12 6/12 $ 28,000 28,000 28,000 (B) Period Interest Expense 28,000 28,000 28,000 28,000 $ 26,116 ⠀ 25,153 25,053 24,950 24,843 24,733 24,616 $504,000 $ 457,836 (C) Amort. (A) (B) $ 1,884 : 2,847 2,947 3,050 3,157 3,267 3,384 $46,164 (D) Unamortized Balance $46,164 44,280 ⠀ 15,805 12,858 9,808 6,651 3,384 0 (E) Carrying Value $700,000 + (D) $ 746,164 744,280 ⠀ 715,805 712,858 709,808 706,651 703,384 700,000 *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 Period Ending June 1/20 Dec. 1/20 ⠀ Dec. 1/26 June 1/27 Dec. 1/27 June 1/28 Dec. 1/28 June 1/29 Totals (A) Cash Interest Paid $700,000 × (E) x 7.0% × 8.0% × 6/12 6/12 $ 28,000 28,000 28,000 (B) Period Interest Expense 28,000 28,000 28,000 28,000 $ 26,116 ⠀ 25,153 25,053 24,950 24,843 24,733 24,616 $504,000 $ 457,836 (C) Amort. (A) (B) $ 1,884 : 2,847 2,947 3,050 3,157 3,267 3,384 $46,164 (D) Unamortized Balance $46,164 44,280 ⠀ 15,805 12,858 9,808 6,651 3,384 0 (E) Carrying Value $700,000 + (D) $ 746,164 744,280 ⠀ 715,805 712,858 709,808 706,651 703,384 700,000 *Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

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 15MCQ

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