Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-3 only please Rodgers Corporation produces and sells football equipment. On July 1, 2011, Rodger issued $16,100,000 of 10-year, 11% bonds at a market (effective)

1-3 only please
image text in transcribed
Rodgers Corporation produces and sells football equipment. On July 1, 2011, Rodger issued $16,100,000 of 10-year, 11% bonds at a market (effective) Interest rate of 10%, receiving cash of $19,227,839. 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, if an amount box does not require an entry, terve it blank 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011. 2. Journalize the entries to record the following: The first semiannual interest payment on December 31, 201, and the amortization of the bond premium, using the straight line method. Round to the nearest dollar a b. The interest payment on June 30, 2012, and the amortization of the band premium, using the straight-line method. Round to the nearest dollar 3. Determine the total interest expense for 2011. Round to the nearest dollar $ 4. Wis 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 vores 12 Menggenow.com 13022. 227 PM Cengah2 Online acting and out on Cangging 5. Compute the price of $19,227,839 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest doar Your total may vary slightly from the price given due to rounding differences Present value of the face amount $ Present value of the semi-annual interest payments Price received for the bonds

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater

10th Edition

0132286386, 978-0132286381

More Books

Students also viewed these Accounting questions