Instructions Campbelling produces and sells outdoor equipment On July 1, 2011. Campbell issued 560.400.000 of 10 year, 11% bonds at a market (affective) interest rate of 10% receiving cash of $64 163,618 Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on May 1, 20Y1 2. Journalize the entries to record the following a. The first semiannual interest payment on December 31, 2017, and the amortization of the bond promum, using the straight-line method (Round to the nearest dollar) b. The interest payment on June 30 2012 and the amortization of the bond promum, using the straight-line method (Round to the newest dollar) 3. Determine the total interest expense for 2011 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rade is greater than the market rate of interest? 5. Compute the price of $64,163,618 received for the bonds by using the present value tables. (Round to the nearest doltar) *Refer to the Chart of Accounts for exact wording of account bles Present Value Tables Two present value tables are provided Present Value of $1 at Compound interest Due in n Periods and Present Value of Ordinary Annuity of S1 per Period Use them as directed in the problem requirements 7% Periods 1 093458 2 Present Value of $1 at Compound Interest Due in n Periods 4.0% 4.5% 5% 5.5% 6% 6.5% 096154 0 95694 0.95238 0.94787 0.94340 0.93897 0.92456 0.91573 0.90703 0.89845 089000 0.88166 0.88900 0.87630 0.86384 0.85161 0 83962 082785 085480 0.83856 0.82270 0.80722 0.79209 0.77732 082193 0.80245 0.78353 0.76513 0 74726 0.72988 0.87344 3 081630 4 0.76290 5 0.71299 6 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 7 0.75992 0.73483 0.71068 0.68744 0 66506 0.64351 0.62275 0.58201 8 0.73059 0.70319 067684 065160 062741 0.60423 9 070259 0.67290 064461 061763 059190 0.56735 0.54393 10 0.67556 0.64393 0.61391 058543 0.55839 0 53273 0.50835 11 0 64958 0.61620 0.58468 055491 052679 0.50021 0.47509 12 0.62460 058966 055684 0.52598 049697 0.46968 0.44401 13 0.60057 0.56427 0.53032 0.49856 046884 0.44102 0.41496 14 0.57748 0.53997 0.50507 044230 0.41410 0 38782 0.47257 0.44793 15 0.55626 0.51672 0 48102 041727 0.38883 0.36245 16 0.49447 0 45811 0.42458 0.39365 0.36510 0.33873 0.53391 0.51337 17 0.47318 0.37136 0 34281 0.31657 043630 041552 040245 0.38147 18 0.49363 0.45280 0.35034 0.32189 0.29566 15 0.55526 0.51672 0.48102 0.44793 0.41727 0.38883 0.36245 16 0.53391 0.49447 0.45811 0.42458 0.39365 0.36510 0.33873 17 0.51337 0.47318 0.43630 0.40245 0.37136 0.34281 0.31657 18 0.49363 0.45280 0.41552 0.38147 0.35034 0.32189 0.29586 19 0.47464 0.43330 0.39573 0.36158 0.33051 0.30224 0.27651 20 0.45639 0.41464 0.37689 0.34273 0.31180 0.28380 0.25842 21 0.43883 0.39679 0.35894 0.32486 0.29416 0.26648 0.24151 22 0.42196 0.37970 0.34185 0.30793 0.27751 0.25021 0.22571 23 0.32557 0.29187 0.26180 0.23494 0.21095 0.40573 0.36335 0.39012 0.34770 24 0.31007 0.27666 0.24698 0.22060 0.19715 25 0.37512 0.33273 0.29530 0.26223 0.23300 0.20714 0.18425 26 0.36069 0.31840 0.28124 0.24856 0.21981 0.19450 0.17220 27 0.34682 0.30469 0.26785 0.23560 0.20737 0.18263 0.16093 28 0.33348 0.29157 0.25509 0.22332 0.19563 0.17148 0.15040 29 0.32065 0.27902 0.24295 0.21168 0.18456 0.16101 0.14056 30 0.30832 0.26700 0.23138 0.20064 0.17411 0.15119 0.13137 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 Periods 4.0% Present Value of Ordinary Annuity of $1 per Period 4.5% 5% 5.5% 6% 6.5% 0.95694 0.95238 0.94787 0.94340 0.93897 7% 1 0.96154 0.93458 2 1.88609 1.87267 1.85941 1.84632 1.83339 1.82063 1.80802 3 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 4 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 5 4.45182 4.38998 4.32948 4.27028 4.21236 4.15568 4.10020 6 5.24214 5.15787 5.07569 4.99553 4.91732 4.84101 4.76654 7 7 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 8 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 9 743533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 10 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 11 8.76048 8,52892 8.30641 8.09254 788687 7.68904 7.49867 12 9.38507 9.11858 8.86325 8,61852 8.38384 8.15873 7.94269 13 9.98565 9.68285 9.39357 9.11708 8.85268 8.59974 8.35765 14 10.56312 10.22283 9.89864 9.58965 9.29498 9.01384 8.74547 15 11.11839 10.73955 10.37966 10.03758 9.71225 9.40267 9.10791 16 11.65230 11.23402 10.83777 10.46216 10.10590 9.76776 9.44665 17 12.16567 11 27407 10.86461 10.47726 10.11058 9.76322 18 12 65930 11.70719 12.15999 12,59329 11.68959 11.24607 10.82760 10.43247 10.05909 19 13,13394 12 08532 11.60765 11.15812 10.73471 10.33560 20 13.59033 13.00794 12.46221 11.95038 11.46992 11.01851 10.59401 21 14.02916 13.40472 12.82115 12.27524 11.76408 11.28498 10.83553 22 14.45112 13.78442 13.16300 12.58317 12.04158 11.53520 11.06124 15 11.11839 10.73955 10.37966 10.03758 9.71225 9.40267 9.10791 16 11.65230 10.83777 10.46216 10.10590 9.76776 9.44665 17 12.16567 11.23402 11.70719 12.15999 11.27407 10.86461 10.11058 9.76322 10.47726 10.82760 18 12.65930 11.68959 11.24607 10.43247 10.05909 19 13.13394 12.59329 12.08532 11.60765 11.15812 10.73471 10.33560 20 13.59033 13.00794 12.46221 11.95038 11.46992 11.01851 10.59401 21 14.02916 13.40472 12.82115 12.27524 11.76408 11.28498 10.83553 22 14.45112 13.78442 13.16300 12.58317 12.04158 11.53520 11.06124 23 14.85684 14.14777 13.48857 12.87504 12.30338 11.77014 11.27219 24 15.24696 14.49548 13.79864 13.15170 12.55036 11.99074 11.46933 25 15.62208 14.82821 14.09394 13.41393 12.78336 12.19788 11.65358 26 15.98277 15.14661 14.37519 13.66250 13.00317 12.39237 11.82578 27 16.32959 15.45130 14.64303 13.89810 13.21053 12.57500 11.98671 28 16.66306 15.74287 14.89813 14.12142 12.74648 12.13711 29 16.98371 16.02189 15.14107 14.33310 13.40616 13.59072 13.76483 12.90749 12 27767 30 17.29203 16.28889 15.37245 14.53375 13.05868 12.40904 31 17.58849 16.54439 15.59281 14.72393 13.92909 13.20063 12.53181 32 17.87355 16.78889 15.80268 14.90420 14.08404 13.33393 12.64656 33 18.14765 17.02286 16.00255 15.07507 14.23023 13.45909 12.75379 34 18.41120 17.24676 16.19290 15.23703 14.36814 13.57661 12.85401 35 18.66461 17.46101 16.37419 15.39055 14.49825 13.68696 12.94767 40 19.79277 18.40158 17.15909 16.04612 15.04630 14.14553 13.33171 45 20.72004 19.15635 17.77407 16.54773 15.45583 14.48023 13.60552 50 21.48218 19.76201 18.25593 16.93152 15.76186 14.72452 13.80075 CHART OF ACCOUNTS Campbell Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance 510 Cost of Merchandise Sold 191 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 515 Credit Card Expense 516 Cash Short and Over 521 Sales Salaries Expense 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense LIABILITIES 210 Accounts Payable 221 Salaries Payable 533 Repairs Expense 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 534 Selling Expenses 535 Rent Expense LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds 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 Journal 1 and 2. Journakze the entries to record the transactions Refer to the Chart of Accounts for exact wording of account titles. Round to the nearest dollar PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST RER DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REE DEBIT CREDIT ASSETS LIABILITIES EQUITY Final Questions 3. Determine the total interest expense for 2071. Enter amount as a positive number. S 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 O No 5. Compute the price of 564,163,618 received for the bonds by using the present value tables Round to the nearest dollar S Present value of the face amount Present value of the semiannual interest payments Price received for the bonds $