Problem 11-2A Instructions 4 Answers are entered in the cells with gray Debit Credit Date Accounts Year 1 6 2 A Year 2 . Year 1 Total interest expense N/A Present value of $1 for 20 semiannual periods at 4.5% semiannual rat Face amount of bonds Present value of bond face amount Present value of an annuity of $1 for 20 periods at 45% Semiannual interest payment Present value of semiannual interest payment Total present value of the bond (proceeds) 10-13 | 10:22 | 10-1A | 11-12 | 11-13 | 11-1A, 11-2A | 11-3A 0 Type here to search Chapter 11 4. Will the bond proceeds always be less than the face amount of the bonds when the contract 5. (Appendix 1) Compute the price of 837,282,062 received for the bonds by using the present Liabilities: Bonds Payable 3. Determine the total interest expense for Year 1 553 rate is less than the market rate of interest? value tables in Appendix A at the end of the text. (Round to the nearest dollar.) PR 11-2A Bond premium, entries for bonds payable transactions Obj. 2 3. $1,168,704 Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $25,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $26,625,925. Interest on the bonds is payable semiannually on December 3 fiscal year of the company is the calendar year Instructions 1 and June 30. The GENERAL LEDGER 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. 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 straight-line method. (Round to the nearest dollar.) 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 dollar.) 3. Determine the total interest expense for Year 1. 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. (Appendix 1) Compute the price of $26,625,925 received for the bonds by using the preser value tables in Appendix A at the end of the text. (Round to the nearest dollar.) Ob PR 11-3A Entries for bonds payable, including bond redemption The following transactions were completed by Winklevoss Inc., whose fiscal year is the cale year: 17,346