5.Compute the price of $74,899,865 received for the bonds by usingExhibit 5andExhibit 7. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount$Present value of the semi-annual interest payments$Price received for the bonds$

v2.cengagenow.com C Cengage X CengageNOWv2 | Online teaching and learning res... exhibt-5.gif 664x1,740 pixels Search Textbook Solutions | Chegg.com + Chapter 11 PR 11-2B, PR 11-38 1 eBook Calculator 1. PR. 11-02.ALGO Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $66,600,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $74,899,865. Interest on the bonds is payable 2. Problem 11-3B Gene... semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: If an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. Cash 74,899,81 Premium on Bonds Payable v 8,299,86: Bonds Payable v 66,600,01 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Learning Objective 2. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) Interest Expense v 3,581,( Premium on Bonds Payable 414,99 Cash v 3,996,( V Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Learning Objective 2. b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) Interest Expense 3,581, Premium on Bonds Payable v 414,99 Cash v 3,996,( Feedback 3. Determine the total interest expense for Year 1. Round to the nearest dollar. Next> Progress: 1/2 items Check My Work Assignment Score: 45.31% All work saved. Email Instructor Save and Exit Submit Assignment for Grading v2.cengagenow.com C Cengage X CengageNOWv2 | Online teaching and learning res... exhibt-5.gif 664x1,740 pixels Search Textbook Solutions | Chegg.com + Chapter 11 PR 11-2B, PR 11-38 eBook Calculator 1. PR. 11-02.ALGO 2. Journalize the entries to record the following: 2. Problem 11-3B Gene... a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) Interest Expense 3,581,( V Premium on Bonds Payable 414,99 Cash v 3,996,( Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Learning Objective 2. b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) Interest Expense v 3,581,( V Premium on Bonds Payable 414,99 Cash v 3,996,( Feedback 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 3,581,00 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes v 5. Compute the price of $74,899,865 received for the bonds by using Exhibit 5 and Exhibit 7. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences. Present value of the face amount Present value of the semi-annual interest payments Price received for the bonds $ Feedback Check My Work Partially correct Feedback Check My Work Partially correct Next > Progress: 1/2 items Check My Work Assignment Score: 45.31% All work saved. Email Instructor Save and Exit Submit Assignment for Grading college.cengage.com C Cengage CengageNOWv2 | Online teaching and learning res... exhibt-5.gif 664x1,740 pixels Your disk is almost full Close Present Value of $1 at Compound Interest Due In n Periods Save space by optimizing storage. Periods 4.0% 5.5% 6.5% Manage... 0.96154 0.95694 0.95238 0.94787 0.9434 0.93897 0.93458 VIAWN 0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 0.88900 0.87630 .86384 0.85161 0.83962 0.81630 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.79031 0.76790 0.70496 0.68533 0.66634 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.73069 0.70319 0.65160 0.62741 0.60423 0.58201 0.70259 0.67290 0.61763 0.5919 0.56735 0.54393 0.67556 0.64393 0.58543 0.55839 0.53273 11 0.64958 0.61620 0.58468 0.55491 0.52679 0.50021 0.47509 12 0.62460 0.58966 0.55684 0.52598 0.49697 0.46968 0.44401 13 0.60057 0.56427 0.53032 0.49856 0.4688 0.44102 0.41496 14 0.57748 0.53997 0.47257 0.44230 0.41410 0.38782 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.53391 0.42458 0.39365 0.36510 0.33873 0.51337 0.47318 0.40245 0.37136 0.34281 0.31657 0.49363 0.45280 0.35034 0.32189 0.29586 0.47464 0.43330 .39573 0.36158 0.33051 0.30224 0.27651 0.45639 0.34273 0.31180 0.28380 0.43883 0.39679 0.35894 0.32486 0.26648 0.24151 0.42196 0.37970 0.30793 0.27751 0.25021 0.22571 0.40573 0.36335 0.32557 0.29187 0.26180 0.21095 0.39012 0.34770 0.27666 0.24698 0.22060 0.19715 0.37512 0.33273 0.29530 0.26223 0.23300 0.20714 0.18425 0.36069 0.31840 0.28124 0.24856 0.21981 0.34682 0.30469 0.26785 0.23560 0.20737 0.18263 0.33348 0.29157 0.22332 0.19563 0.17148 0.15040 0.32065 0.21168 0.18456 0.16101 0.14056 0.30832 0.26700 0.23138 0.20064 0.17411 0.15119 0.13137 0.29646 0.25550 0.22036 0.19018 0.16425 0.14196 0.12277 0.28506 0.24450 0.20987 0.18027 0.15496 0.13329 0.11474 0.27409 0.23397 0.17087 0.1461 0.12516 0.10723 0.26355 0.22390 0.19035 0.16196 0.13791 0.10022 0.25342 0.21425 0.18129 0.15352 0.13011 0.11035 0.09366 40 0.20829 0.17193 0.14205 0.11746 0.09722 0.08054 0.06678 45 0.17120 0.13796 0.11130 0.08988 0.07265 0.05879 50 0.14071 0.11071 0.08720 0.06877 0.05429 0.04291 0.03395 Present Value of $1 at Compound Interest Due in n Periods Periods 109% 11% 12% 13% 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.85734 0.84168 0.82645 0.81162 0.79719 0.78315 0.76947 0.79383 0.77218 0.73119 0.71178 0.69305 0.67497 0.73503 0.70843 0.68301 0.65873 0.63552 0.61332 0.59208 college.cengage.com C Cengage CengageNOWv2 | Online teaching and learning res... exhibt-5.gif 664x1,740 pixels Close 40 0.20829 0.17193 0.14205 0.11746 0.09722 0.08054 0.06678 Your disk is almost full Save space by optimizing storage. 45 0.17120 0.13796 0.11130 0.08988 0.07265 Manage... 0.14071 0.11071 0.08720 0.06877 0.05429 0.04291 0.03395 Present Value of $1 at Compound Interest Due in n Periods Periods 1% 12% 13% 14% UIAWN 0.91743 0.90909 0.90090 0.88496 0.87719 0.85734 0.84168 0.8264 .81162 0.79719 0.78315 0.76947 0.79383 0.77218 0.75131 0.7117 0.69305 0.67497 0.73503 .70843 0.68301 0.65873 0.63552 0.61332 .59208 0.68058 0.64993 0.59345 0.56743 0.54276 0.51937 0.63017 0.56447 0.53464 0.5066 0.48032 0.58349 .54703 0.5131 0.48166 0.45235 0.42506 0.39964 0.54027 0.5018 0.43393 0.40388 0.37616 0.35056 0.50025 0.46043 0.4241 .39092 .36061 0.33288 0.46319 0.42241 .35218 0.29459 0.26974 0.42888 0.38753 0.35049 0.31728 0.28748 0.26070 0.23662 0.39711 0.35553 0.31863 .28584 .25668 0.2307 0.36770 0.32618 0.2291 0.20416 0.18207 .34046 0.2633 .23199 .2046 .18068 .15971 0.31524 0.27454 0.23939 0.20900 .18270 0.15989 0.14010 0.29189 0.25187 0.21763 0.18829 0.16312 0.14150 0.12289 0.27027 0.23107 0.19784 .14564 0.12522 0.10780 0.21199 0.15282 .13004 .11081 0.09456 0.2317 .19449 .16351 .13768 0.11611 .09806 0.08295 0.21455 0.17843 0.14864 0.12403 0.10367 .08678 0.07276 0.19866 0.16370 0.11174 0.09256 0.07680 0.06383 0.18394 .15018 0.12285 0.10067 0.08264 0.06796 0.05599 0.17032 0.13778 0.1 1168 109069 0.06014 0.04911 0.15770 .12640 0.10153 0.08170 0.06588 0.05323 .04308 0.14602 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 0.13520 0.10639 0.08391 0.06631 0.05252 0.04168 0.03315 0.12519 0.0976 0.07628 0.05974 0.0468 0.03689 0.02908 0.11591 0.08955 0.06934 0.05382 0.04187 0.03264 0.02551 0.10733 0.0821 0.06304 .04849 .03738 0.02889 0.02237 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 0.01963 0.09202 0.06915 0.05210 0.03935 0.02980 0.02262 0.01722 0.08520 0.0634 0.04736 .03545 .026 0.02002 0.01510 0.07889 0.05820 0.04306 0.03194 0.02376 0.01772 0.01325 0.07305 0.05339 0.03914 0.02878 0.02121 0.01568 0.01162 0.06763 0.04899 0.03558 0.02592 0.01894 0.01388 0.01019 40 0.04603 0.03184 0.02209 0.01538 0.01075 0.00753 0.00529 45 0.03133 0.02069 0.01372 0.00913 0.00610 0.00409 0.00275 50 0.02132 0.01345 0.00852 0.00542 0.00346 0.00222 0.00143 college.cengage.com Cengage CengageNOWv2 | Online teaching and... exhibt-5.gif 664x1,740 pixels exhibt-7.gif 685x1,7 Close Present Value of Ordinary Annuity of $1 per Period Your disk is almost full Save space by optimizing storage. Periods 5.5% 6.5% Manage... UA WN - 0.95694 0.95238 0.94787 0.94340 0.93458 1.8860 .87267 1.85941 1.84632 1.83339 1.82063 .80802 2.77509 2.7489 2.72325 2.69793 2.67301 2.64848 2.62432 3.62990 3.58753 3.54595 3.50515 3.4651 3.4258 3.38721 4.45182 4.27028 .21236 4.15568 4.10020 5.24214 5.07569 4.99553 4.91732 4.84101 4.76654 6.00205 5.8927 5.7863 5.68297 5.58238 5.48452 5.38929 5.73274 6.5958 6.33457 6.20979 6.08875 5.97130 7.43533 7.2687 7.1078 6.95220 6.65610 5.51523 8.1 1090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 8.76048 8.52892 8.09254 7 88687 7.68904 9.3850 9.1 1858 8.86325 8.61852 8.38384 8.15873 7.94269 9.98565 9.68285 8.85268 8.59974 8.35765 10.56312 10.2228 9.58965 9.29498 0.73955 10.37966 10.03758 9.71225 9.10791 11.23402 10.83777 10.46216 0.10590 9.76776 9.44665 12.16567 10.11058 12.65930 12.15999 1.68959 11.24607 10.82760 10.43247 0.05909 13.13394 12.59329 12.08532 11.60765 11.15812 10.73471 10.33560 20 13.59033 13.00794 11.95038 11.46992 1.01851 10.59401 21 14.02916 13.40472 12.821 15 12.27524 1.76408 1.28498 10.83553 14.451 12 13.78442 13.16300 12.58317 12.04158 11.53520 1 1.06124 14.85684 14.14777 13.48857 12.87504 2.30338 1.77014 1 1.27219 24 15.24696 14.49548 13.79864 13.15170 12.55036 11.99074 11.46933 25 15.62208 4.82821 14.09394 13.41393 2.78336 12.19788 11.65358 26 15.98277 15.14661 14.37519 13.66250 13.00317 12.39237 11.82578 27 16.32959 15.45130 14.64303 13.89810 13.21053 12.57500 1 1.98671 28 16.66306 15.74287 14.89813 14.12142 13.40616 12.74648 12.13711 29 30 16.98371 16.02189 15.14107 14.33310 13.59072 12.90749 12.27767 17.29203 15.37245 14.53375 13.76483 13.05868 12.40904 17.58849 16.54439 15.59281 14.72393 13.92909 13.20063 12.53181 17.87355 16.78889 15.80268 14.90420 14.08404 13.33393 12.64656 18.14765 17.02286 16.00255 5.07507 14.23023 12.75379 18.41120 17.24676 16.19290 5.23703 14.36814 13.57661 12.85401 18.66461 17.46101 15.39055 12.94767 40 19.79277 18.40158 17.15909 16.04612 15.04630 14.14553 13.33171 15 20.72004 19.15635 17.77407 16.54773 15.45583 14.48023 13.60552 50 21.48218 19.76201 18.25593 16.93152 15.76186 14.72452 13.80075 Present Value of Ordinary Annuity of $1 per Period 10% 11% 129% 13% 14% 0.92593 0.91743 0.90909 0.89286 0.88496 0.87719 W N 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 college.cengage.com Cengage CengageNOWv2 | Online teaching and.. exhibt-5.gif 664x1,740 pixels exhibt-7.gif 685x1,7 Your disk is almost full Close 19.79277 18.40158 17.15909 16.04612 15.04630 14.14553 13.33171 Save space by optimizing storage. Manage... 20.72004 19.15635 17.77407 16.54773 15.45583 14.48023 13.60552 21.48218 19.76201 18.25593 16.93152 15.76186 14.72452 13.80075 Present Value of Ordinary Annuity of $1 per Period Periods 10% 1 1% 129% 13% 14% UIAWN 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 1.7591 1.73554 1.71252 .69005 .66810 .64666 2.57710 2.53129 2.40183 2.32163 3.31213 3.23972 3.1698 .10245 3.03735 2.97447 2.91371 3.99271 3.88965 3.79079 3.60478 3.51723 3.43308 0 Va 4.62288 4.48592 4.35526 4.23054 4.11 141 3.99755 5.20637 5.03295 4.86842 4.71220 4.56376 4.42261 .28830 5.74664 5.53482 5.14612 4.96764 1.79677 5.24689 5.99525 5.75902 5.53705 5.32825 5.13166 1.94637 6.71008 6.41766 5.14457 5.88923 5.65022 5.42624 5.21612 7.13896 6.80519 6.49506 6.20652 5.93770 5.68694 5.45273 7.53608 7.1607 6.81369 5.19437 5.91765 5.66029 7.90378 7 4869 7.10336 6.74987 6.42355 6.12181 5.84236 3.22424 7.78615 7.36669 6.96187 .62817 6.30249 5.00207 8.55948 8.06069 7.60608 7.19087 6.81086 6.46238 5.14217 8.85137 7.82371 7.37916 6.97399 6.60388 6.26506 9.12164 3.5436 8.02155 7.5487 7.11963 .72909 5.37286 9.37189 3.7556 8.20141 7.70162 7.24967 6.46742 9.60360 3.9501 8.36492 7.83929 7.36578 6.93797 5.55037 9.81815 8.51356 7.96333 7.02475 6.62313 10.01680 9.29224 8.64869 8.07507 7.56200 7.10155 6.68696 10.20074 9.4424 8.77154 8.17574 7.64465 7.16951 6.74294 10.37106 9.58021 8.88322 8.26643 7.71843 7.22966 6.79206 10.52876 9.7066 8.98474 8.34814 7.78432 7.28288 6.83514 10.67478 9.82258 9.07704 7.32998 6.87293 26 10.80998 9.92897 9.16095 8.48806 7.89566 7.37167 6.90608 10.93516 10.02658 9.2372 8.54780 7.9425 7 .40856 6.93515 28 11.05108 10.11613 9.30657 8.60162 7.98442 7.44120 6.96066 29 11.15841 10.19828 9.36961 8.65011 8.02181 7 47009 6.98304 30 11.25778 9.42691 8.69379 8.05518 7.49565 7.00266 11.34980 10.34280 9.47901 8.73315 8.08499 7.51828 7.01988 11.43500 10.40624 9.52638 8.76860 8.11159 7.53830 7.03498 11.51389 0.46444 9.56943 8.80054 8.13535 7.55602 7.04823 11.58693 10.51784 9.60857 8.82932 8.15656 7.5717 7.05985 11.65457 9.64416 8.85524 8.17550 7.58557 7.07005 40 11.92461 10.75736 9.77905 8.95105 7.63438 12.10840 10.88120 9.00791 8.28252 7.66086 7.12322 50 12.23348 10.96168 9.04165 7.67524 7.13266