a Campbell Inc. produces and sells outdoor equipment. On July 1, 2011. Campbell issued $40,000,000 a 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving Cash of 548,601,480. Interest on the bonds is payable semiannually on December 31 and June 30. The flocal year of the company is the calendar year Required: 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011 2. Journalize the entries to record the following: . The first somiannual interest payment on December 31, 2081, and the amortization of the bond premium, using the straight line method b. The interest payment on June 30, 2012, and the amortization of the bond premium, using the straight-line method 3. Determine the total interest expense for 20Y1. 4 win 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? 5. Compute the price of $42,601,480 received for the bonds by using the present value tables Tho presont value tablos are provided: Present Value of $1 at Compound Interest Doe nn Periods and Present Value of Ordinary Annuty of St per Period. Use them as directed in the problem requirements Periods 7% 1 0.93456 2 0.87344 4 0.81630 076290 071299 5 6 056634 7 0.62275 8 0.58201 0.54393 Present Value of $1 et Compound Interest Dun in Periods 4.09 4.5% 5% 5.5% 6% 6.5% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.92456 091573 0.90703 0.89845 0.89000 0.88165 0.18000 0.87630 0.86384 0.85161 0.83962 0.82785 0.85450 0.83656 0.82270 0.50722 0.79209 0.77732 0.82193 0.50245 0.78350 0.76513 0.74726 072980 0.79031 0.76790 0.74622 0.72525 0.70498 068533 076992073483 071068 0.68744 0.00500 0.64351 0.73060 070319 0.67684 0.65160 0.62741 0.00423 0 70250 0.67200 064401 061763 0.59190 0.56735 0.67506 0.64303 0.61301 0.58543 0.55639 0.53273 0.64956 061620 0 56460 055491 0.52679 0.50021 062400 0.58006 0.55684 0.52508 0.40697 0.40000 0.60057 056427 0.53032 0.49856 0.46884 0.44102 057748 0.53007 0,50507 0.47257 0.44230 0.45410 0.56526 051672 0.48102 0.44793 041727 0.38853 0.53391 0.49447 0.45811 0.42458 0.39365 0 36510 0.51337 0.47318 0.43630 0.40245 0.37130 0.34281 0.49363 0.45280 0.41552 038147 0.35034 0.32189 0.47464 0.43330 030573 0 36158 0.33051 030224 0.45639 0.41454 0.37689 034273 0.31180 028380 10 11 0.50635 0.47500 0.44401 12 13 0.41490 14 15 16 0.38782 0.36245 0.33873 0.31657 0.29556 17 16 10 0.27651 20 025842 eBook Print Item Bond premium, entries for bonds payable transactions Instructions Present Value Tables Chart of Accounts General Journal Final Questions Present Value Tables 14 0.57748 0.53997 0.50507 0.47257 0.44230 0.41410 0.38782 15 0.55526 0.51672 0.48102 0.44793 0.41727 0.38883 0.36245 16 0.53391 0.49447 0.45811 0.42458 0.39365 0.36510 0.33873 17 0.51337 0.47318 0.43630 0.40245 0.37136 0.34281 0.31657 18 0.49363 0.45280 0.41552 0.38147 0.35034 0.32189 0.29586 19 0.47464 0.43330 0.39573 0.36158 0.33051 0.30224 0.27651 20 0.45639 0.41464 0.37689 0.34273 0.31180 0.28380 0.25842 21 0.43883 0.39679 0.35894 0.32486 0.29416 0.26648 0.24151 22 0.42196 0.37970 0.34185 0.30793 0.27751 0.25021 0.22571 23 0.40573 0.36335 0.32557 0.29187 0.26180 0.23494 0.21095 24 0.39012 0.34770 0.31007 0.27666 0.24698 0.22060 0.19715 25 0.37512 0.33273 0.29530 0.26223 0.23300 0.20714 0.18425 26 0.36069 0.31840 0.28124 0.24856 0.21981 0.19450 0.17220 27 0.34682 0.30469 0.26785 0.23560 0.20737 0.18263 0.16093 28 0.33348 0.29157 0.25509 0.22332 0.19563 0.17148 0.15040 29 0.32065 0.27902 0.24295 0.21168 0.18456 0.16101 0.14056 30 0.30832 0.26700 0.23138 0.20064 0.17411 0.15119 0.13137 31 0.29646 0.25550 0.22036 0.19018 0.16425 0.14196 0.12277 32 0.28506 0.24450 0.20987 0.18027 0.15496 0.13329 0.11474 33 0.27409 0.23397 0.19987 0.17087 0.14619 0.12516 0.10723 34 0.26355 0.22390 0.19035 0.16196 0.13791 0.11752 0.10022 35 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 0.04761 50 0.14071 0.11071 0.08720 0.06877 0.05429 0.04291 0.03395 Bond premium, entries for bonds payable transactions tristructions Present Value Tables Chart of Accounts General Journal Final Questions Present Value Tables Periods 4.0% 7% 1 0.96154 Present Value of Ordinary Annuity of $1 per Period 4.5% 5% 5.5% 6% 6.5% 0.95694 0.95238 0.94787 0.94340 0.93897 1.87267 1.85941 1.84632 1.83339 1.82063 2.74896 2.72325 2.69793 2.67301 2.64848 0.83458 2 1.88609 1.80802 3 2.77509 2.62432 4 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 5 4.45182 4.38998 4.32948 4.27028 4.21236 4.15568 4.10020 6 5.24214 5.15787 4.99553 4.91732 4.84101 4.76654 5.07569 5.78637 7 6.00205 5.89270 5.68297 5.58238 5.48452 5.38929 8 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 9 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 7.02358 10 8.11090 7-91272 7.72173 7.53763 7.36009 7.18883 11 8.76048 8.52892 8.30641 8.09254 7.88687 7.49867 7.68904 8.15873 12 9.38507 9.11858 8.86325 8.61852 8.38384 7.94269 13 9.98565 9.68285 9.39357 9.11708 8.85268 8.59974 8.35785 14 10.56312 10.22283 9.89884 9.58965 9.29498 9.01384 8.74547 15 11.11839 10.73955 10.37966 10.03758 9.71225 9.40267 9.10791 16 11.65230 11.23402 10.83777 10.46216 10.10590 9.76776 9.44665 17 12.16567 11.70719 11 27407 10.86461 10.47726 9.76322 10.11058 10.41247 18 12.65930 12.15999 11.68959 11.24607 10.82760 10.05909 19 13.13394 12.59329 11.60765 11.15812 10.73471 10.33560 12.08532 12.46221 20 13.59033 13.00794 11.95038 11.46992 11.01851 10.59401 21 14.02916 13.40472 12.82115 12.27524 11.76408 11.28496 10.83553 22 14.45112 13.78442 13.16300 12.58317 12.04158 11.53520 11.06124 23 14.85684 14.14777 13.48857 12.87504 12.30338 11.77014 11.27219 Check My Work 5 more Check My Work uses remaining All work saved. Present Value Tables 19 TV.DOSTZ TU.LUZOS 2.04004 9.5000 9.29490 W.01304 0.74047 15 11.11839 10.73955 10.37966 10.03758 9.71225 9.40267 9.10791 16 11.65230 11.23402 10.83777 10.46216 10.10590 9.76776 9.44665 17 12.16567 11.70719 11.27407 10.86461 10.47726 10.11058 9.76322 18 12.65930 12.15999 11.68959 11.24607 10.82760 10.43247 10.05909 19 13.13394 12.59329 12.08532 11.60765 11.15812 10.73471 10.33560 20 13.59033 13.00794 12.46221 11.95038 11.46992 11.01851 10.59401