h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries
h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries
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
Related questions
Question
8
![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
*Adjusted for rounding
No
1
2
(A)
Cash
Interest
Paid
$700,000 × (E) × 7.0% x
8.0% × 6/12
6/12
Date
(B)
Period
Interest
Expense
$ 28,000
:
28,000
28,000
28,000
28,000
28,000
28,000
$ 504,000 $ 457,836
$ 26,116
:
25, 153
25,053
24,950
24,843
24,733
24,616
h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries
December 01, 202 Bond interest expense
(C)
Amort.
(A) (B)
$ 1,884
:
2,847
2,947
3,050
3,157
3,267
3,384
$46,164
December 01, 202 Bonds payable
(D)
Unamortized
Balance
$46,164
44,280
:
15,805
12,858
9,808
6,651
3,384
0
Premium on bonds payable
Interest payable
Cash
X Answer is not complete.
General Journal
(E)
Carrying
Value
$700,000 +
(D)
$ 746,164
744,280
:
715,805
712,858
709,808
706,651
703,384
700,000
Premium on bonds payable
Cash
Gain on retirement of bonds
Debit
700,000
9,808
Credit
679,000
30,808](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0f50f43-7d5a-44d3-a944-80a2d96600fe%2F5be40bce-3f41-4898-8f44-b3c0e52bed1e%2Fqicqpuc_processed.png&w=3840&q=75)
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 1/20
Dec. 1/20
:
Dec. 1/26
June 1/27
Dec. 1/27
June 1/28
Dec. 1/28
June 1/29
Totals
*Adjusted for rounding
No
1
2
(A)
Cash
Interest
Paid
$700,000 × (E) × 7.0% x
8.0% × 6/12
6/12
Date
(B)
Period
Interest
Expense
$ 28,000
:
28,000
28,000
28,000
28,000
28,000
28,000
$ 504,000 $ 457,836
$ 26,116
:
25, 153
25,053
24,950
24,843
24,733
24,616
h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries
December 01, 202 Bond interest expense
(C)
Amort.
(A) (B)
$ 1,884
:
2,847
2,947
3,050
3,157
3,267
3,384
$46,164
December 01, 202 Bonds payable
(D)
Unamortized
Balance
$46,164
44,280
:
15,805
12,858
9,808
6,651
3,384
0
Premium on bonds payable
Interest payable
Cash
X Answer is not complete.
General Journal
(E)
Carrying
Value
$700,000 +
(D)
$ 746,164
744,280
:
715,805
712,858
709,808
706,651
703,384
700,000
Premium on bonds payable
Cash
Gain on retirement of bonds
Debit
700,000
9,808
Credit
679,000
30,808
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning