Bond Premium, Entries for Bonds Payable Transactions

Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $76,200,000 of 10-year, 14% bonds at a market (effective) interest rate of 13%, receiving cash of $80,398,292. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.