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Instructons Campbell Inc. produces and sets outdoor equipment. On July 1, 2041, Campbell issued $73,900,000 of 10 year, 11% bonds at a market (effective Interest

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Instructons Campbell Inc. produces and sets outdoor equipment. On July 1, 2041, Campbell issued $73,900,000 of 10 year, 11% bonds at a market (effective Interest rate of 9% receiving cash of 583,512,668. 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 July 1, 2011 2. Journalize the entries to record the following a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond premium, using the straight line method (Round to the nearest dollar) The interest payment on June 30, 2012, and the amortization of the bond premium, using the straight-line method (Round to the nearest dollar) 3. Determine the total interest expense for 2074 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? 5. Compute the price of 583,512,668 received for the bonds by using the present a le tables (Round to the newest dolar) *Refer to the Chart of Accounts for exact wording of accounties Question not attempted. PAGE 10 JOURNAL Score: 0V75 ACCOUNTING EQUATION DESCRIPTION POST. REF. LIABILITIES EQUITY PAGE 11 JOURNAL Score: 0/37 ACCOUNTING EQUATION DATE POST. REE DEBIT CREDIT ASSETS LIABILITIES EQUITY 3. Determine the total interest expense for 2011. Enter amount as a positive numbers 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 5. Compute the price of $83, 512 668 received for the bonds by using the present value tables Round to the nearest dollar Present value of the face amount Present value of the semiannual interest payments Price received for the bonds Points

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