Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $81,000,000 of four-year 9% bonds at a market (effective) interest rate of 2%, with extent selesema 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. Open spreadsheet Compute the following: a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar S b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method, Round your answer to the ne $ c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method found your S d. The amount of the bond interest expense for the first year Round your answer to the nearest de
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $81,000,000 of four-year 9% bonds at a market (effective) interest rate of 2%, with extent selesema 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. Open spreadsheet Compute the following: a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar S b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method, Round your answer to the ne $ c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method found your S d. The amount of the bond interest expense for the first year Round your answer to the nearest de
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Compute bond proceeds, amortizing discount by interest method, and interest expense
Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $81,000,000 of four-year 9% bonds at a market (effective) interest rate of 2%, with test peale semanualy The
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 discount to be amortized for the first semiannual interest peyment period, using the interest method. Round your answer
$
c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method f
S
d. The amount of the bond interest expense for the first year Round your answer to the nearest der](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2db88682-90e3-467c-a442-f079115a326b%2F790b84cb-debb-4234-a772-dbeb3ff3e8f7%2F8qs7ts9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Compute bond proceeds, amortizing discount by interest method, and interest expense
Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $81,000,000 of four-year 9% bonds at a market (effective) interest rate of 2%, with test peale semanualy The
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 discount to be amortized for the first semiannual interest peyment period, using the interest method. Round your answer
$
c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method f
S
d. The amount of the bond interest expense for the first year Round your answer to the nearest der
![$81,000,000
9%
4
12%
Semiannual
Using Tormulas 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 aradina.
Compute bond proceeds, amortizing discount by interest method, and interest expense
DATA
A Face amount bonds
5
Contract rate of interest
6
7
8
9
11
HARMSSA
Term of bonds, years
Market rate of interest
Interest payment
12
13 a. PV of cash proceeds
14 b. Discount amortized for the 1st interest payment period
c. Discount amortized for the 2nd interest payment period
16 d. Interest expense for the 1st year
15
17
18
Formulas
$73,454,121 Your answer should be a formula.
$762,247 Your answer should be a formula.
$807,982 Your answer should be a formula.
$8,860,229 Your answer should be a formula.
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2db88682-90e3-467c-a442-f079115a326b%2F790b84cb-debb-4234-a772-dbeb3ff3e8f7%2Fvnxta89_processed.jpeg&w=3840&q=75)
Transcribed Image Text:$81,000,000
9%
4
12%
Semiannual
Using Tormulas 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 aradina.
Compute bond proceeds, amortizing discount by interest method, and interest expense
DATA
A Face amount bonds
5
Contract rate of interest
6
7
8
9
11
HARMSSA
Term of bonds, years
Market rate of interest
Interest payment
12
13 a. PV of cash proceeds
14 b. Discount amortized for the 1st interest payment period
c. Discount amortized for the 2nd interest payment period
16 d. Interest expense for the 1st year
15
17
18
Formulas
$73,454,121 Your answer should be a formula.
$762,247 Your answer should be a formula.
$807,982 Your answer should be a formula.
$8,860,229 Your answer should be a formula.
Amount
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