Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $30,000,000 of five-year, 13% bonds at a market (effective) interest rate of 11%, 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. $ 32,261,279 b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. $ 2,261,279 X c. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. 185,289 d. The amount of the bond interest expense for the first year. Round to the nearest dollar. 360,919 x Present Value of $1 at Compound Interest EXHIBIT 8 Periods no 4% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 47% 0.95694 0.91573 0.87630 0.83856 0.80245 0.76790 0.73483 0.70319 0.67 290 0.64393 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 57% 0.94787 0.89845 0.85161 0.80722 0.76513 0.72525 0.68744 0.65160 0.61763 0.58543 6% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 0.62741 0.59190 0.55839 67% 0.93897 0.88166 0.82785 0.77732 0.72988 0.68533 0.64351 0.60423 0.56735 0.53273 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 10% 0.90909 0.82645 0.75131 0.68301 0.62092 0.56447 0.51316 0.46651 0.42410 0.38554 11% 0.90090 0.81162 0.73119 0.65873 0.59345 0.53464 0.48166 0.43393 039092 035218 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 13% 0.88496 0.78315 0.69305 0.61332 0.54276 0.48032 0.42506 0.37616 0.33288 0.29459 EXHIBIT 10 Present Value of an Annuity of $1 at Compound Interest Periods 13% 4% 0.96154 1.88609 2.77509 3.62990 4.45182 5.24214 6.00205 6.73274 7.43533 8.11090 4 % 0.95694 1.87267 2.74896 3.58753 4.38998 5.15787 5.89270 6.59589 7.26879 7.91272 5% 0.95238 1.85941 2.72325 3.54595 432948 5.07569 5.78637 6.46321 7.10782 7.72173 57% 6% 0.94787 0.94340 1.84632 1.83339 2.69793 2.67301 3.50515346511 4.27028 4.21236 4.99553 4.91732 5.68297 5.58238 6.33457 6.20979 6.95220 6.80169 7.53763 7.36009 6%% 0.93897 1.82063 2.64848 3.42580 4.15568 4.84101 5.48452 6,08875 6,65610 7.18883 7% 0.93458 1.80802 2.62432 3.38721 4.10020 4.76654 5.38929 5.97130 6.51523 7.02358 10% 11% 12% 0.90909 0.90090 0.89286 1.73554 1.71252 1.69005 2.48685 2.44371 2.40183 3.16987 3.10245 3.03735 3.79079 3.69590 3.60478 4.35526 4.23054 4.11141 4.86842 4.71220 4.56376 5.146124.96764 5.759025537055.32825 6.14457 5.88923 5.65022 0.88496 1.66810 2.36115 2.97447 3.51723 3.99755 442261 4.79677 5.13166 5.42624 09