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 $10,000,000 of four-year, 14% 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 10,735,963 x b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar, 55,842 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. 59,193 X d. The amount of the bond Interest expense for the first year. Round to the nearest dollar. 1,284,965 X Present Value of $1 at Compound Interest EXHIBITS Periods 1 2 3 4 5 496 0.96154 0.92456 0.83900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 49% 0.95694 0,91573 0.87630 0.83856 0.80245 0.76790 0.73483 0.70319 0.67290 0.64393 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 5%% 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 1096 0.90909 0.82645 0.75131 0.68301 0.62092 056447 0.51316 0.46651 0.42410 0.38554 11% 090090 0.81162 0.73119 0.65873 0.59345 0.53464 0.48166 0.43393 0.39092 0.35218 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 6 7 8 9 TO EXHIBIT 10 Present Value of an Annuity of $1 at Compound Interest Periods 1 2 3 4 5 6 7 8 9 10 4% 0.96154 1.88609 2.77509 3.62990 445182 5.24214 6.00205 6.73274 7.43533 8.11090 4496 0.95694 1.87267 2.74896 3.58753 4.38998 5.15787 5.89270 6.59589 7.26879 791272 596 0.95238 1.85941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 51% 0.94787 1.84632 2.69793 3:50515 4 27028 4.99553 5.68297 6.33457 6.95220 7.53763 6% 0.94340 1.83339 267301 3.46511 4.21236 4.91732 5.58238 6.20979 6.80169 736009 6%% 0.93897 1.82063 264848 3.42550 4.15568 484101 548452 608875 6.65610 7.18883 79 0.93458 1.80802 2.62432 3.38721 4.10020 4.76654 5.38929 5.97130 651523 702358 10% 0.90909 1.73554 2.49685 3.16987 3.79079 4.35526 4.86842 5133493 5.75902 6.1-4457 1195 0.90090 1.71252 244371 3.10245 3.69590 423054 471220 5.14612 553705 5188922 1296 0.89286 169005 240183 303735 3.50478 411141 456376 496764 532825 5.65022 13% 0.88496 1.66810 2.36115 2.97447 3.51723 3.99755 4.42261 4.79677 5.13166 5.42524