Compute Bond Proceeds, Amortizing Discount by Interest Method, and interest Expense Lewis Co, produces and sells aviation equipment. On the first day of its fiscal yoar, Lewis Co. issued $10,000,000 of three-year, 11% bonds at a market (effective) interest rate of 13%, 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 doliar. 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 perlod, 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. Entries for instaliment Note Transactions On the first day of the fiscal year, Shaller Company borrowed 533,000 by giving a seven-year, 8\%4 installment note to Soros Bonk. The note requires ansual payments of $6,404, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $2,640 and principal repayment of $3,764. Joumalize the entries to record the following: a1. Issued the installment note for cash on the first day of the fiscal year. a2. Paid the first annual payment on the note. For a compound transaction, if an amount box does not roquire an eatry, leave it blank. b. Explain how the notes payable would be reported on the balance sheet at the end of the first year Notes payable are reported as liabilities on the bolance sheet. The portion of the note payable that is due within The remaining portion of the note payable that is not due within one vear is reported as a(n) Present Value of an Annuity Determine the present value of 5130,000 to be recelved at the end of each of four years, using an interest rate of 5.5%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibit 8. Round to the nearest whole dollar. b. By using the present value table in Exhibit 10. Round to the nearest whole dollar. c. Why is the present value of the four $130,000 cash receipts less than the $520,000 to be received in the future? The present value is less due to over the 4 years