Question
I'm taking Accounting II and my question is how do you determine The amount of the bond interest expense for the first year? The original
I'm taking Accounting II and my question is how do you determine The amount of the bond interest expense for the first year? The original question was: ComputeBondProceeds, AmortizingPremiumby Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of three-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 inExhibit 5andExhibit 7. 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. Round to the nearest dollar.
I've already solved parts A-C; A is $94,496,351, B is $652,701, C is $688,599. The only help I need is with D) in the problem.
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