Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co. issued $70,000,000 of three-year, 10% bonds at a market (effective) interest rate of 12%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar.$ b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar.$ c. The amount of discount 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.$
Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co. issued $70,000,000 of three-year, 10% bonds at a market (effective) interest rate of 12%, with interest payable semiannually. Compute the following:
a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar.
$
b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar.
$
c. The amount of discount 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.
$
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