Bond Premium, Entries for Bonds Payable Transactions

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $80,300,000 of 10-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $91,213,292. 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. Compute the price of $91,213,292 received for the bonds by using Present value at compound interest, and Present value of an annuity. 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