60.1K

Verified Solution

Link Copied!

Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1 Year 1, Rodgers Corporation issued $65,800,000 of 10 year, 12% bonds at a market (effective interest rate of 10%, receiving cash of $74,000,167. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required For all journal entries with a compound transaction, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. 2. Journalize the entries to record the following: 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. Round to the nearest dollar 4. Withe bond proceeds always be greater than the face amount of the hands when the 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? S. Compute the price of $74,000.167 received for the bonds by using Table 1, Table 2, Table 3 and Table 4. Round to the nearest dollar. Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semiannual interest payments Price received for the bonds

Answer & Explanation Solved by verified expert

See Answer