Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $42,000,000 of four-year, 12% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Compute the following: The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ fill in the blank 2 The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 3 The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 4 The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
Compute bond proceeds, amortizing premium by interest method, and interest expense
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $42,000,000 of four-year, 12% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Compute the following:
-
The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.
$ fill in the blank 2
-
The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$ fill in the blank 3
-
The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$ fill in the blank 4
-
The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
