Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $42,000,000 of four-year, 12% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Compute the following:The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.$ fill in the blank 2The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.$ fill in the blank 3The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.$ fill in the blank 4The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.$ fill in the blank 5

Given information par value of bonds =$ 42,000,000 Life of bond = 4 years, = 4x2 = 8 semi annual…

Answered: Ware Co. produces and sells motorcycle…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $42,000,000 of four-year, 12% bonds at a market (effective) interest rate of 11%, 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.

Open spreadsheet

Compute the following:

The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.

$ fill in the blank 2
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.

$ fill in the blank 3
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.

$ fill in the blank 4
The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.

$ fill in the blank 5