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Maps eBook Compute Bond Proceeds, Amortizing Discount by Interest Method, and interest Expense Lewis Co. produces and sells aviation equipment. On the first day of

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Maps eBook 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 year, Lewis Co. issued $20,000,000 of five-year, 12% bonds at o market (effective) interest rate of 14%, 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 $ 18,595,030 b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. 101,652 c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar 108,768 d. The amount of the bond interest expense for the first year. Round to the nearest dollar 2,610,420 Maps eBook 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 year, Lewis Co. issued $20,000,000 of five-year, 12% bonds at o market (effective) interest rate of 14%, 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 $ 18,595,030 b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. 101,652 c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar 108,768 d. The amount of the bond interest expense for the first year. Round to the nearest dollar 2,610,420 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 4.45182 5.24214 6.00205 6.73274 743533 8.11090 49596 0.95694 1.87267 2.74896 3.58753 438998 5.15787 5.89270 6.59589 7.26879 791272 5% 0.95238 1.85941 2.72325 354595 432948 5.07569 5.78637 646321 7.10782 7.72173 541% 0.94787 1.84632 2.69793 3.50515 427028 4.99553 5.68297 6.33457 6.95220 7.53763 6% 0.94340 1.83339 2.67301 346511 4.21236 4.91732 558238 6.20979 6.80169 7.36009 6%% 093897 1.82063 2.64848 3.42580 4.15568 4.84101 5.48452 6.08875 6,65610 7.18883 7% 093458 1.80802 2,62432 3.38721 4.10020 476654 5.38929 5.97130 6.51523 7.02358 10% 0.90909 1.73554 2.48685 3.16987 3.79079 4.35526 4.86842 533493 5.75902 6.14457 119 0.90090 1.71252 244371 3.10245 3.69590 4.23054 4.71220 5.14612 5.53705 5.88923 129 0.89286 169005 2.40183 3.03735 3.60478 411141 4.56376 4.96764 5.32825 5.65022 13% 0.88496 1.66810 2.36115 297447 3.51723 399755 442261 4.79677 5.13166 5.42624

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