Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium Rodgers Corporation produces and sells football equipment. On July 1, 2071, Rodgers issued $68,000,000 of 20-year, 14% bonds at a market (effective) Interest rate of 12%, receiving cash of $78,214,960. 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. 20Y1 July 1 Cash Accounts Payable Bonds Payable 68,000,000 X X Feedback Check My 1. Record the cash received (debt), the owy (crest), and the promum on the bonds payable (credit), which is the difference between the two amounts, 2. Soumize the entries to record the following a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond premium, using the interest method. Round to the nearest dollar 2011 Dec 31 Interest Expense X Cash X b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the interest method. Round to the nearest dollar. 2012 June 30 Bonds Payable 4,760,000 x Cash 4,760,000 x Feedback Check My Work 2b. (Cash received - premium amortized Dec 31, 20Y1) x semiannual market rate - Interest Expense (debit). Principal X semiannual contract (credit). The premium amortized (debit) is the difference between the two amounts. 3. Determine the total interest expense for 2011. Round to the nearest dollar