Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $28,000,000 of four-year, 11% bonds at a market (effective) interest rate of 9%, with interest payable semiannually.
Compute the following:
The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.
$
The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$
The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$
The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
$
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