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Compute Bond Proceeds, Amortizing Discount by Interest Method, and Interest Expense Boyd Co. produces and sells aviation...

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Accounting

Compute Bond Proceeds, Amortizing Discount by Interest Method,and Interest Expense

Boyd Co. produces and sells aviation equipment. On the first dayof its fiscal year, Boyd issued $80,000,000 of five-year, 9% bondsat a market (effective) interest rate of 12%, with interest payablesemiannually. Compute the following, presenting figures used inyour computations:

a. The amount of cash proceeds from the sale ofthe bonds. Use the tables of present values in Exhibit 5 andExhibit 7. Round to the nearest dollar.
$fill in the blank 1

b. The amount of discount to be amortized forthe first semiannual interest payment period, using the interestmethod. Round to the nearest dollar.
$fill in the blank 2

c. The amount of discount to be amortized forthe second semiannual interest payment period, using the interestmethod. Round to the nearest dollar.
$fill in the blank 3

d. The amount of the bond interest expense forthe first year. Round to the nearest dollar.
$fill in the blank 4

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