Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium Rodgers Corporation produces and sells football equipment. On July 1, 2041, Rodgers issued $83,000,000 of 20-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $95,468,260. 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, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2011 July 1 Cash 95,468,260 Premium on Bonds Payable 12,468,260 Bonds Payable 83,000,000 Feedback Check My Work 1. Record the cash received (debit), the liability (credit), and the premium on the bonds payable (credit), which is the difference between the two amounts. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar. 2011 Dec. 31 Interest Payable x Premium on Bonds Payable 000 Cash