Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year,...
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Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co. issued "$30,000,000" of five-year, 10% 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. $fill in the blank 1
b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. $fill in the blank 2
c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. $fill in the blank 3
d. The amount of the bond interest expense for the first year. Round to the nearest dollar. $fill in the blank 4
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