Periods 52% 4% 42% 5% 6% 7% 10% 11% 12% 13% 0.96154 0.95694 0.94787 0.94340 0.93897 0.93458 0.90909 0.89286 0.95238 0.90090 0.88496 0.91573 0.90703 0.89000 0.88166 0.92456 0.89845 0.87344 0.82645 0.81162 0.79719 0.78315 3 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.75131 0.73119 0.71178 0.69305 0.80722 0.68301 0.85480 0.83856 0.82270 0.79209 0.77732 0.76290 0.65873 0.63552 0.61332 0.78353 0.76513 0.71299 0.54276 0.82193 0.80245 0.74726 0.72988 0.62092 0.59345 0.56743 0.79031 0.74622 0.72525 0.68533 0.66634 0.50663 0.76790 0.70496 0.56447 0.53464 0.48032 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.51316 0.48166 0.45235 0.42506 0.65160 0.60423 0.58201 0.40388 8 0.73069 0.70319 0.67684 0.62741 0.46651 0.43393 0.37616 0.36061 0.70259 0.64461 0.59190 0.54393 0.67290 0.61763 0.56735 0.42410 0.39092 0.33288 0.64393 10 0.67556 0.61391 0.58543 0.55839 0.53273 0.50835 0.38554 0.35218 0.32197 0.29459 Periods 4% 42% 5½% 6% 7% 10% 11% 12% 13% 0.94340 0.96154 0.95694 0.95238 0.94787 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 1.82063 1.73554 1.69005 1.88609 1.87267 1.85941 1.84632 1.83339 1.80802 1.71252 1.66810 2.72325 3 2.77509 2.74896 2.69793 2.67301 2.64848 2.62432 2.48685 2.44371 2.40183 2.36115 3.62990 3.50515 2.97447 4 3.58753 3.54595 3.46511 3.42580 3.38721 3.16987 3.10245 3.03735 4.38998 4.45182 4.32948 4.27028 4.21236 4.15568 4.10020 3.79079 3.69590 3.60478 3.51723 5.15787 5.07569 5.24214 4.99553 4.91732 4.84101 4.76654 4.35526 4.23054 4.11141 3.99755 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 4.86842 4.71220 4.56376 4.42261 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.33493 5.14612 4.96764 4.79677 6.51523 9. 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 5.75902 5.53705 5.32825 5.13166 7.91272 7.53763 7.18883 7.02358 10 8.11090 7.72173 7.36009 6.14457 5.88923 5.65022 5.42624

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Current Liabilities And Payroll
Section: Chapter Questions
Problem 10.23EX
icon
Related questions
Question
100%

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $35,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following, presenting figures used in your computations:
a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibits 8 and 10. Round to the nearest dollar.
b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar.
c. The amount of premium 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.

Exhibits 8 and 10 attached

Periods
52%
4%
42%
5%
6%
7%
10%
11%
12%
13%
0.96154
0.95694
0.94787
0.94340
0.93897
0.93458
0.90909
0.89286
0.95238
0.90090
0.88496
0.91573
0.90703
0.89000
0.88166
0.92456
0.89845
0.87344
0.82645
0.81162
0.79719
0.78315
3
0.88900
0.87630
0.86384
0.85161
0.83962
0.82785
0.81630
0.75131
0.73119
0.71178
0.69305
0.80722
0.68301
0.85480
0.83856
0.82270
0.79209
0.77732
0.76290
0.65873
0.63552
0.61332
0.78353
0.76513
0.71299
0.54276
0.82193
0.80245
0.74726
0.72988
0.62092
0.59345
0.56743
0.79031
0.74622
0.72525
0.68533
0.66634
0.50663
0.76790
0.70496
0.56447
0.53464
0.48032
0.75992
0.73483
0.71068
0.68744
0.66506
0.64351
0.62275
0.51316
0.48166
0.45235
0.42506
0.65160
0.60423
0.58201
0.40388
8
0.73069
0.70319
0.67684
0.62741
0.46651
0.43393
0.37616
0.36061
0.70259
0.64461
0.59190
0.54393
0.67290
0.61763
0.56735
0.42410
0.39092
0.33288
0.64393
10
0.67556
0.61391
0.58543
0.55839
0.53273
0.50835
0.38554
0.35218
0.32197
0.29459
Transcribed Image Text:Periods 52% 4% 42% 5% 6% 7% 10% 11% 12% 13% 0.96154 0.95694 0.94787 0.94340 0.93897 0.93458 0.90909 0.89286 0.95238 0.90090 0.88496 0.91573 0.90703 0.89000 0.88166 0.92456 0.89845 0.87344 0.82645 0.81162 0.79719 0.78315 3 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.75131 0.73119 0.71178 0.69305 0.80722 0.68301 0.85480 0.83856 0.82270 0.79209 0.77732 0.76290 0.65873 0.63552 0.61332 0.78353 0.76513 0.71299 0.54276 0.82193 0.80245 0.74726 0.72988 0.62092 0.59345 0.56743 0.79031 0.74622 0.72525 0.68533 0.66634 0.50663 0.76790 0.70496 0.56447 0.53464 0.48032 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.51316 0.48166 0.45235 0.42506 0.65160 0.60423 0.58201 0.40388 8 0.73069 0.70319 0.67684 0.62741 0.46651 0.43393 0.37616 0.36061 0.70259 0.64461 0.59190 0.54393 0.67290 0.61763 0.56735 0.42410 0.39092 0.33288 0.64393 10 0.67556 0.61391 0.58543 0.55839 0.53273 0.50835 0.38554 0.35218 0.32197 0.29459
Periods
4%
42%
5½%
6%
7%
10%
11%
12%
13%
0.94340
0.96154
0.95694
0.95238
0.94787
0.93897
0.93458
0.90909
0.90090
0.89286
0.88496
1.82063
1.73554
1.69005
1.88609
1.87267
1.85941
1.84632
1.83339
1.80802
1.71252
1.66810
2.72325
3
2.77509
2.74896
2.69793
2.67301
2.64848
2.62432
2.48685
2.44371
2.40183
2.36115
3.62990
3.50515
2.97447
4
3.58753
3.54595
3.46511
3.42580
3.38721
3.16987
3.10245
3.03735
4.38998
4.45182
4.32948
4.27028
4.21236
4.15568
4.10020
3.79079
3.69590
3.60478
3.51723
5.15787
5.07569
5.24214
4.99553
4.91732
4.84101
4.76654
4.35526
4.23054
4.11141
3.99755
6.00205
5.89270
5.78637
5.68297
5.58238
5.48452
5.38929
4.86842
4.71220
4.56376
4.42261
6.73274
6.59589
6.46321
6.33457
6.20979
6.08875
5.97130
5.33493
5.14612
4.96764
4.79677
6.51523
9.
7.43533
7.26879
7.10782
6.95220
6.80169
6.65610
5.75902
5.53705
5.32825
5.13166
7.91272
7.53763
7.18883
7.02358
10
8.11090
7.72173
7.36009
6.14457
5.88923
5.65022
5.42624
Transcribed Image Text:Periods 4% 42% 5½% 6% 7% 10% 11% 12% 13% 0.94340 0.96154 0.95694 0.95238 0.94787 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 1.82063 1.73554 1.69005 1.88609 1.87267 1.85941 1.84632 1.83339 1.80802 1.71252 1.66810 2.72325 3 2.77509 2.74896 2.69793 2.67301 2.64848 2.62432 2.48685 2.44371 2.40183 2.36115 3.62990 3.50515 2.97447 4 3.58753 3.54595 3.46511 3.42580 3.38721 3.16987 3.10245 3.03735 4.38998 4.45182 4.32948 4.27028 4.21236 4.15568 4.10020 3.79079 3.69590 3.60478 3.51723 5.15787 5.07569 5.24214 4.99553 4.91732 4.84101 4.76654 4.35526 4.23054 4.11141 3.99755 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 4.86842 4.71220 4.56376 4.42261 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.33493 5.14612 4.96764 4.79677 6.51523 9. 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 5.75902 5.53705 5.32825 5.13166 7.91272 7.53763 7.18883 7.02358 10 8.11090 7.72173 7.36009 6.14457 5.88923 5.65022 5.42624
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning