Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium

Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $38,000,000 of 20-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $43,708,360. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2011 July 1 Cash 43,208,360 Premium on Bonds Payable 5.700.360 Bonds Payable 38,000,000 a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond premium, using the interest method. Rour 20Y1 Dec 31 Interest Expense 5,708,360 X Premium on Bonds Payable 142.709 X 142,709 X Cash 5,708.360 X b. The interest payment on June 30, 2012, and the amortization of the bond premium, using the interest met 2012 June 30 Interest Expense Premium on Bonds Payable lll Cash 3. Determine the total interest expense for 2011. Round to the nearest dollar f