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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 1/20 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
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
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