FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Insert
Arial
X ✓ fx
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
16
d. Interest expense for the 1st year
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Search (Option + Q)
Data
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Compute bond proceeds, amortizing premium by interest method, and interest expense
H✓ ✓ A✓
$29,000,000
10%
3
9%
Semiannual
Review
Amounts
..
View
=✓
ab
се
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Using formulas and cell references, perform the required analysis, and input your answers into the Amounts
column. Transfer the numeric results for the green entry cells (C13:C16) into the appropriate fields in CNOWv2
for grading.
furgonetas canon▬▬
Help
Formulas
Editing
Currency
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$ 5.000
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.00
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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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- 5 0 V File C13 123456 7 89 Home 18 19 20 Insert Arial X ✓ fx Face amount of bonds Contract rate of interest Draw Term of bonds, years Market rate of interest Interest payment Page Layout く 10 Formulas DATA B ✓ ✓ V Data A B C Compute bond proceeds, amortizing discount by interest method, and interest expense Av $80,000,000 9% 5 11% Semiannual Review Amount ... View Ev ab ≡く D Using formulas and cell references, perform the required analysis, and input your answers into the Amount column. Transfer the numeric results for the green entry cells (C13:C16) into the appropriate fields in CNOWv2 10 for gradina. 11 12 13 a. PV of cash proceeds 14 b. Discount amortized for the 1st interest payment period 15 c. Discount amortized for the 2nd interest payment period 16 d. Interest expense for the 1st year 17 Help Formulas Editing ✓ Currency E $ 500 ✓ C →>>arrow_forwardhelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forwardOn May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $478,700. The interest rate charged by the bank was 6.75%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a - Journal entry a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.arrow_forward
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