Hello, I\'m looking for help specifically for numbers 2, 3, and 5. Any help woul

Question

Hello, I'm looking for help specifically for numbers 2, 3, and 5. Any help would be appreciated! Thank you!

Bond Premium, Entries for Bonds Payable Transactions

Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $59,900,000 of 10-year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $63,479,193. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required: If an amount box does not require an entry, leave it blank. . Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1 Cash 63,479,193 V Premium on Bonds Payable 3,579,193 Bonds Payable 59,900,000 Feedback 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 straight-line method. (Round to the nearest dollar.) Interest Expense Premium on Bonds Payablexx Cash Feedback 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.) Interest Expense Premium on Bonds Payable Cash Feedback

Explanation / Answer

Solution 2:

Solution 3:

Total interest expense for year 1 = $3,415,040

Solution 5:

Journal Entries - Campbell Inc. Date Particulars Debit Credit Year 1- Dec 31 Interest Expense Dr $3,415,040.00 Premium on bond payable Dr ($3,579,193/20) $178,960.00          To Cash ($59,900,000*12%*6/12) $3,594,000.00 (Being interest paid and premium amortized) Year 2- Jun 30 Interest Expense Dr $3,415,040.00 Premium on bond payable Dr ($3,579,193/20) $178,960.00          To Cash ($59,900,000*12%*6/12) $3,594,000.00 (Being interest paid and premium amortized)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.