Question: Compute Bond Proceeds, Amortizing Discount by Interest Method, and Interest Expense Boyd Co. produces and sells aviation equipment. On the first day of its fiscal

Compute Bond Proceeds, Amortizing Discount by Interest Method, and Interest Expense

Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued $70,000,000 of five-year, 12% bonds at a market (effective) interest rate of 14%, with interest payable semiannually. Compute the following:

a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. $fill in the blank 1

b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. $fill in the blank 2

c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. $fill in the blank 3

d. The amount of the bond interest expense for the first year. Round to the nearest dollar.

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