Compute bond proceeds, amortizing premium or discount by interest method, and interest expense

I strongly encourage creating a bond Amortization table This will make answering

the following questions easier.

Ware Co$.$ produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued

$$22,750,000$ of $15-$year, $12\%$ bonds at a market $($effective$)$ interest rate of $10\%,$ with interest

payable semiannually.

Compute the following, presenting figures used in your computations:

a The amount of cash proceeds from the sale of the bonds. Use the tables of present values in

Exhibit $5$ and Exhibit $7$ or our Excel template. Round to the nearest dollar.

b The amount of premium to be amortized for the first semiannual interest payment period,

using the interest method. Round to the nearest dollar.

c The amount of premium to be amortized for the second semiannual interest payment

period, using the interest method. Round to the nearest dollar.

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

Compute bond proceeds, amortizing premium or discount by interest method, and interest expense

I strongly encourage creating a bond Amortization table This will make answering

the following questions easier.

Ware Co$.$ produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued

$$22,750,000$ of $15-$year, $12\%$ bonds at a market $($effective$)$ interest rate of $12\%,$ with interest

payable semiannually.

Compute the following, presenting figures used in your computations:

e The amount of cash proceeds from the sale of the bonds. Use the tables of present values in

Exhibit $5$ and Exhibit $7$ or our Excel template. Round to the nearest dollar.

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

Compute bond proceeds, amortizing premium or discount by interest method, and interest expense

I strongly encourage creating a bond Amortization table This will make answering

the following questions easier.

Ware Co$.$ produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued

$$22,750,000$ of $15-$year, $12\%$ bonds at a market $($effective$)$ interest rate of $14\%,$ with interest

payable semiannually.

Compute the following, presenting figures used in your computations:

g The amount of cash proceeds from the sale of the bonds. Use the tables of present values in

Exhibit $5$ and Exhibit $7$ or our Excel template. Round to the nearest dollar.

h The amount of discount to be amortized for the first semiannual interest payment period,

using the interest method. Round to the nearest dollar.

i The amount of discount to be amortized for the second semiannual interest payment

period, using the interest method. Round to the nearest dollar.

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