Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $29,000,000 of three-year, 10% bonds at a market (effective) interest rate of 9%, 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. X 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. $ 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. $ d. The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $29,000,000 of three-year, 10% bonds at a market (effective) interest rate of 9%, 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. X 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. $ 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. $ d. The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Insert
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B Interest payment
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Face amount of bonds
Contract rate of interest
Term of bonds, years
Market rate of interest
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DATA
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13 a. PV of cash proceeds
14 b. Premium amortized for the 1st interest payment period
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c. Premium amortized for the 2nd interest payment period
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d. Interest expense for the 1st year
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Search (Option + Q)
Data
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B
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Compute bond proceeds, amortizing premium by interest method, and interest expense
H✓ ✓ A✓
$29,000,000
10%
3
9%
Semiannual
Review
Amounts
..
View
=✓
ab
се
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Using formulas and cell references, perform the required analysis, and input your answers into the Amounts
column. Transfer the numeric results for the green entry cells (C13:C16) into the appropriate fields in CNOWv2
for grading.
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$ 5.000
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Transcribed Image Text:<
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 $29,000,000 of three-year, 10% bonds at a market (effective) interest rate of
9%, 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.
X
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.
$
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.
$
d. The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
$
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