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Campbell Inc, produces and sells outdoor went on July 1 Year 1, Campbell issued $39,200,000 of 10 year, 13% bonds at a market (effective interest
Campbell Inc, produces and sells outdoor went on July 1 Year 1, Campbell issued $39,200,000 of 10 year, 13% bonds at a market (effective interest rate of 12 receiving cash or 594,315,156. Interest on the bonus is payablet semiannually on December 31 and Jone 30. The local yease of the company is the calendar year Required: If an amount box does not requr an entry, leave it blank 1. Soumaline the entry to record the amount of cathe proceeds from the son of the bonds on July 1, Year 1 2. Joomulize the entries to record the following #. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line mthout. (Hound to the nearest deltar.) The interest payment on June 30, Yoar 2, and the amortization of the bond premium using the straight-ine method. (Round to the nearest dolar) b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method (Round to the nearest dolar) 3. Determine the total interest expense for Year 1. Round to the nearest dolla. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract vote is greater than the market rate of interest? 5. Compute the price of $94,315,156 received for the bonds by using bichibits and thibit? (Round to the nearest dollar) Your total may vary slightly from the price given dort rounding differences Present value of the face amount Present value of the ser-annunt interest payments Price received for the bonds
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