Campbef inc. produces and sells outdoor equipment. On duly 1, 20Y1, Campbel issued $73,900,000 of 10 year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $33.512,66. Interest on the bonds is payable semiannually on December 31 and June 30 . The fiscal year of the company is the calendar yeat. Requifed: 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on duly 1, 20YI. 2. Joumathe the entries to record the following: a. The frat semiannuas interest payment on December 31, 20Y1, and the anortitation of the bond premum, using the straight ine method b. The interest payment on dune 30,20 Y2 and the amortization of the bond premum, using the straghifine method 3. Determine the total interest eppense for 20y1 i 4. Wi the bond proceeds aways be greater than the face amount of the bonds when the contract rate is greater chas bhe market rate of inierest? 5. Compice the price of $23,512.668 receved for the bonds by using the pretert vasue tables. Campbell Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts 126 Interest Receivable EXPENSES 127 Notes Receivable 510 Cost of Merchandise Sold 131 Merchandise Inventory 515 Credit Card Expense 141 Office Supplies 516 Cash Short and Over 142 Store Supplies 521 Sales Salaries Expense 151 Prepaid Insurance 522 Office Salaries Expense 191 Land 531 Advertising Expense 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 194 Office Equipment 534 Selling Expenses 195 Accumulated Depreciation-Office Equipment 535 Rent Expense 536 Insurance Expense Chart of Accounts LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 Bad Debt Expense 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expense-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 252 Discount on Bonds Payable 711 Loss on Redemption of Bonds 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322. Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Eamings 351 Cash Dividends 352 Stock Dividends 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20r. 2a. Joumalize the entry to record the first semiannual interest payment on December 31, zoyt, and the amortization of the bond premum, using the straight ine method 26. Journalize the entry to record the interest payment on June 30, 20Y2, and the amortitation of the bond premum, using the straight-line method. 3. Determine the total interest expense for 20Y. Additional instructions 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 No 5. Compute the price of $83,512,668 received for the bonds by using the present value tables. Additional Instruction