Question: Compute bond proceeds, amortizing premium by interest method, and interest expense Ware Co. produces and seils motercyce parte, On the first day of its fiscal
Compute bond proceeds, amortizing premium by interest method, and interest expense Ware Co. produces and seils motercyce parte, On the first day of its fiscal year, Ware issued $35,000,000 of three cyoar, 12% bonds at a murket (effective) interest rate of 114., with intecest poyable semiannually. This information has been callected in the Microson Excel Online file, Open the soreadsheet, perform the required anaiysie, and Input your antwers in the questions beiow. Dpen spreadaheet Compute the fallowing: a. The amount of cash proceeds from the sole of the bonds. Round your answer to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest delar. 5 6. The arnount of premium to be amortized for the second semiannoal interest payment period, using the interest method. Round your answer to the nesiest dollar. 3 d. The amount of the bond interest expense for the first year. Round your answer to the nearest dollar. 5
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