Compute bond proceeds, amortizing premium by interest method, and interest expenseCompute bond proceeds, amortizing premium by interest method, and interest expense

DATA

REQUIRED:

a$.$ Compute the amount of cash proceeds from the sale of the bonds.

b$.$ Compute the amount of premium to be amortized for the first semiannual interest payment period, using the interest method.

c$.$ Compute the amount of premium to be amortized for the second semiannual interest payment period, using the interest method.

d$.$ Compute the amount of the bond interest expense for the first year.

Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells

show in the orange cells. Transfer amounts to CNOWv$2$ for grading.

a$.$ PV of cash proceeds

b$.$ Premium amortized for the $1$ st interest payment period

c$.$ Premium amortized for the $2$ nd interest payment period

d$.$ Interest expense for the $1$st year

Amounts

Formulas

Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Compute the following:

a$.$ The amount of cash proceeds from the sale 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 dollar.

$x$

c$.$ 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.

$

$x$

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

$

$x$