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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

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
(A)
Cash
Interest
Paid
$700,000
8.0% × 6/12
$ 28,000
:
28,000
28,000
28,000
(B)
Period
Interest
Expense
(E) x 7.0% x
6/12
$ 26,116
25, 153
25,053
24,950
24,843
24, 733
24,616
$504,000 $ 457,836
28,000
28,000
28,000
(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.)
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