Question
Need help badly, i'm up to my neck in make-up work due being sick. I need to finish this today as my semester ends today.
Need help badly, i'm up to my neck in make-up work due being sick. I need to finish this today as my semester ends today. Anybody please help! I would really appreciate it. Thank you so very much.
Campbell, Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $47,000,000 of 20-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $54,060,340. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. Journalize the entries to record the following: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. Year 1 July 1 Cash - Premium on bonds payable - ? Bonds payable - ? 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. (If required, round your answers to the nearest dollar.) Year 1 Dec. 31 Interest expense - ? Premium on bonds payable - ? Cash - ? b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the interest method. (Round your answers to the nearest dollar.) Year 2 June 30 Interest expense - ? Premium on bonds payable - ? Cash - ? Determine the total interest expense for Year 1. = ?
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