Campbeli inc produces and sells outdoor equipment, On July 1,20Y1, Campbell issued $84,100,000 of 10-yeaf, 12\% bonds at a market (effective) interest rate of 10%, receving cash of $94,580,761 Interest on the bonds is payable semainnually on December 31 and June 30 . The fiscal year of the company is the calendir year Required: 1 Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Yi. 2. Joumalze the entres to record the following. a. The first semiannual interest payment on December 31, 20Y1, and the amortization of me band premuim, using the straight-ine method b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straghl-line method 3. Defermine the fotal inferest expense for 20Y t 4 Wir the bond proceeds always be greater than the face amount of the bonds when the cantract rate is greater than the market nate of initorest? 5 Compule lfie price of 594,500,701 received for the bonds by using the present value fabies Present Value of $ Si at Compounc \begin{tabular}{|c|c|c|c|c|c|c|} \hline cos & 4.55 & 55 & 5.55 & 65 & 6.5% & m \\ \hline 0.96154 & 0.95604 & 0.95238 & 094787 & & o s3597 & o s345s \\ \hline 0.92456 & 0.91573 & 0.90703 & 0.00845 & 089000 & o.tsis & 0.87344 \\ \hline 0sen900 & 0.07830 & 0.05384 & 025161 & 083962 & 0.2785 & 0.51630 \\ \hline 0.55400 & o casas6 & 0 02270 & 0.0072 & 078209 & 0.7732 & 0.78290 \\ \hline 0.22193 & 0.80245 & 0.78353 & 0.76513 & 074726 & 0.728es & 0.71299 \\ \hline arto0s1 & 0.76790 & 0.74622 & 0.72525 & 0.70496 & 0.68533 & 066534 \\ \hline 0.75992 & 0.73453 & 071068 & 0.68744 & 0.66506 & 0.64351 & 062275 \\ \hline 0.73069 & 0.70319 & 0.67684 & 0.65160 & 062741 & 0.60423 & 0 star \\ \hline 0.70259 & 0.67290 & 0.64451 & 0.61763 & 0.59190 & 056735 & 054969 \\ \hline 0.67556 & 0.64393 & 0.61391 & 0.58543 & 0.55899 & 0.58273 & 0.50835 \\ \hline 0.64958 & 0.61620 & 0.58468 & 055491 & 0.52679 & 0.50021 & 0.47500 \\ \hline 0.62460 & 058966 & 0.55634 & 0.52598 & 0.49597 & 0.45968 & 044401 \\ \hline 0.60057 & 0.56427 & 0.53032 & 0.49556 & 0.46384 & 0.44102 & 0.41456 \\ \hline 0.57748 & 053997 & 050507 & 0.47257 & 0.44230 & 0.41410 & \\ \hline 0.55526 & 051672 & 0.45102 & 0.44793 & 0.41727 & & 0.36245 \\ \hline 0.53991 & 0.49447 & 0.45811 & 0.42458 & 039365 & 0.35510 & 0335/3 \\ \hline 0.51397 & 0.47318 & 0.43630 & 0.40245 & 0.37136 & 034281 & 031657 \\ \hline 0.49363 & 0.45230 & 0.41552 & 0.38147 & 035034 & 0.32199 & 0.29586 \\ \hline 0.47464 & 0.43330 & 039573 & 0156 & 033051 & 030224 & 0.27851 \\ \hline 0.45639 & 0.41464 & 0.37609 & 034273 & 0.31180 & 0.25300 & 0.2580 \\ \hline 0.43853 & 039679 & 0.35594 & 0.52456 & 0.29416 & 0.25648 & 0.24151 \\ \hline 0.42196 & 0.37970 & 0.34185 & 0.30793 & 0.27751 & 0.25021 & 0.22571 \\ \hline 0.40573 & 0.36335 & 0.32557 & 0.29187 & 0.26180 & 0.23494 & 0.21095 \\ \hline 0.39012 & 0.34770 & 0.31007 & 0.27666 & 0.2465 & 022060 & e.15715 \\ \hline 037512 & 033273 & 0.29530 & 0.26223 & 0.23300 & 020714 & Q.roes \\ \hline 036069 & 031040 & 0.28124 & 024056 & 0.21901 & 0. 19450 & 0.17200 \\ \hline 0.34682 & 030459 & 0.26705 & 0.23560 & 0.20737 & 0. 135s3 & a. 16090 \\ \hline 03345 & 029157 & 0.25500 & 02233 & 0.19563 & e.714s & 0.15040 \\ \hline 0.32065 & 0.27902 & 024235 & 02n6s & e tB456 & 0.16101 & e 140st \\ \hline 0.30532 & 0.20700 & 0.23138 & 0.20064 & Q.17411 & e.s11 & a 137 \\ \hline 029646 & 0.25550 & 022036 & 019018 & e 16425 & & e 22m \\ \hline 0.28506 & 02445 & 0.20507 & e. 16027 & 0 istas & e. 13xes & 0.11474 \\ \hline 0.27400 & o 2039 & e 1958 & e mos? & 0.6519 & a costs & 0.10/23 \\ \hline oxexs & & ovas & 0.1616 & 013701 & 0.1082 & 0.10022 \\ \hline 0:5362 & 02465 & 0.16125 & 0.15352 & 0.111 & e.12035 & e poses \\ \hline 02009 & & 0.16205 & e.mes & sown & o.005s4 & a osers \\ \hline 0.7720 & 0.197/2 & & eccuss & oprass & e cosare & 000701 \\ \hline 014071 & 011001 & ootre & ocken & coses & 00091 & a pases. \\ \hline \end{tabular} 1. Joumalize the entry to recovd the amount of cash proceeds from the issuance of the bonds on July 1,20Y1. 2. Joumalife the entry to mocond the first semianinuaf interest payment on December 31,20Y1, and the amortization of the bond premium, axing the straighi ine inethod Gencral Soumal instrustions 2b. Jaumalize the entry fo record the intcrest payment on June 30,2012 , and the amortizabon of the bond pramium, using the straght-ine nethod: Finat Ountions 3. Detormine the totat interest expense for 20y t 5. Compute the price of $94,580,761 received for the bonds by using the present value tables
