Campbell inc. produces and seils ouldoor equipment. On July 1, 20Y1, Campbell issued 500,400,000 of 10-year, 11\% bonds at a market (oHfective) interest rate of 10*k, receiving cash of $64,163,618. Interest on the bonds is payable semiannualy on December 31 and sune 30 . The fiscal year of the compacy is the calendar year Aequired: 1. Joumalike the enty fo recond the amount of eash proceeds fom the issuance of the bonds an duly 1,20f." 2. doumakte the entries to record the following * a. The first semianrual interest payment on December 31, 20Y1, and the amorfuation of the bond premium, using the straght-ine method. (Aound to the nearest dollar) dasiar) 3. Determine the botal interest expense for 29Y. 4. Wi the bond proceeds awsys be greater than the Gace amount of the bonds when the corvact rade is greuder mhan the market nale of intevesr? 5. Compule the price of 36,163.616 receved for the bonds by using ihe present vale lables. (Round to the nearest dollar) - Refer to the Chart or Aocounts for exact wording of account sties. Two present value tables are provided: Present Value of $1 at Compound Interest Due in n Periods and Present Value of Ordinary Annuly of $1 per Penod. Use them as directed in the problem requirements. Present Value of $1 at Chmnnaind intareet nia in n Dariade \begin{tabular}{|cccccccc|} \hline Present Value Tables & & & & & & \\ \hline 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 \end{tabular} Present Value Tables Present Value Tables \begin{tabular}{lllllllll} 23 & 14.85684 & 14.14777 & 13.48857 & 12.87504 & 12.30338 & 11.77014 & 11.27219 \\ \hline 24 & 15.24696 & 14.49548 & 13.79864 & 13.15170 & 12.55036 & 11.99074 & 11.46933 \\ \hline 25 & 15.62208 & 14.82821 & 14.09394 & 13.41393 & 12.78336 & 12.19788 & 11.65358 \\ \hline 26 & 15.98277 & 15.14661 & 14.37519 & 13.66250 & 13.00317 & 12.39237 & 11.82578 \\ \hline 27 & 16.32959 & 15.45130 & 14.64303 & 13.89810 & 13.21053 & 12.57500 & 11.98671 \\ \hline 28 & 16.66306 & 15.74287 & 14.89813 & 14.12142 & 13.40616 & 12.74648 & 12.13711 \\ \hline 29 & 16.98371 & 16.02189 & 15.14107 & 14.33310 & 13.59072 & 12.90749 & 12.27767 \\ \hline 30 & 17.29203 & 16.28889 & 15.37245 & 14.53375 & 13.76483 & 13.05868 & 12.40904 \\ \hline 31 & 17.58849 & 16.54439 & 15.59281 & 14.72393 & 13.92909 & 13.20063 & 12.53181 \\ \hline 32 & 17.87355 & 16.78889 & 15.80268 & 14.90420 & 14.08404 & 13.34393 & 12.64656 \\ \hline 33 & 18.14765 & 17.02286 & 16.00255 & 15.07507 & 14.23023 & 13.45909 & 12.75379 \\ \hline 34 & 18.41120 & 17.24676 & 16.19290 & 15.23703 & 14.36814 & 13.57661 & 12.85401 \\ \hline 35 & 18.66461 & 17.46101 & 16.37419 & 15.39055 & 14.49825 & 13.68696 & 12.94767 \\ \hline 40 & 19.79277 & 18.40158 & 17.15909 & 16.04612 & 15.04630 & 14.14553 & 13.33171 \\ \hline 45 & 20.72004 & 19.15635 & 17.77407 & 16.54773 & 15.45583 & 14.48023 & 13.60552 \\ \hline 50 & 21.48218 & 19.76201 & 18.25593 & 16.93152 & 15.76186 & 14.72452 & 13.80075 \\ \hline & & & & & & & \\ \hline \end{tabular} CHART OF ACCOUNTS 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 532 Delivery Expense 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense Chart of Accounts 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 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-Orfice 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 Premlum on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 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 Earnings 351 Cash Dividends 352 Stock Dividends 1. and 2 woumalte the entries to record the transactions. Poler to the Chart of Accounts for exact wording of account bbes: Aound to the nearest dollar. (x) 3. Determine the total interest expense for 20Y1. Enter amount as a positive number. 4. Wil the bond proceods aways be greater than the face amount of the bonds whon the contract rate is greater than the mak Yes No 5. Compute the price of $64,163,618 recewed for the bonds by using the present value fables. Round to the nearest dollar
