Date | Accounting titles & Explanations | Debit | Credit | |||||
1) | 1-Jul | Cash | 64,163,618 | |||||
Premium on bonds payable | 3,763,618 | |||||||
Bonds payable | 60,400,000 | |||||||
2) | 31-Dec | interest expense | 3133819 | |||||
Premium on bonds payable | (3763618/20) | 188181 | ||||||
Cash | (60,400,000*11%*1/2) | 3322000 | ||||||
30-Jun | interest expense | 3133819 | ||||||
Premium on bonds payable | 188181 | |||||||
Cash | 3322000 | |||||||
3) | total interest expense for year 1 | 3133819 | ||||||
4) | yes | |||||||
5) | n = | 5% | ||||||
t = | 20 | |||||||
for principal use PV of $1 at 5% for 20 years | ||||||||
for interest use PV of ordinary annuity at 5% for 20 years | ||||||||
principal | ||||||||
60,400,000*.37689 = | 22764156 | |||||||
interest paid | ||||||||
3322000*12.46221= | 41399462 | |||||||
bonds issue price | 64,163,618 | |||||||
Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $60,400,000 of 10-yea...
Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $87,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $92,658,219. 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, 20Y1.* 2. Journalize the entries to...
Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $73,900,000 of 10 year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of 883,512,068. Interest on the bonds is payablo 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, 2091." 2. Journalize the...
Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. 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.* 2. Journalize the entries to record the following:* a....
Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. 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, 20Y1.* 2. Journalize the entries...
Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. 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, 20Y1.* 2. Journalize the entries to...
Help on step 2 B Instructions Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. 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.* 2. Journalize the...
Instructions Campbell, Inc. produces and sells outdoor equipment On July 1, 2011. Campbell issued $30,000,000 of 10 year, 10% bonds at a market (effective interest rate of receiving cash of $31,951,110 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the call Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bond 2. Journalize the entries to record the following." a....
Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. 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. * 2. Journalize the entries to record the following:* a. The first semiannual...
Instructions On July 1, 20Y1, Danzer Industries Inc. issued $48,800,000 of 10-year, 9% bonds at a market (effective) interest rate of 11%, receiving cash of $42,968,258. 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, 20Y1.* 2. Journalize the entries to record the following:* a....
Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued $87,000,000 of 10-year, 11% bonds at a market (effective) interest rate of 10%, receiving cash of $92,421,105. 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, Year 1.* 2. Journalize...