Bond Premium, Entries for Bonds Payable Transactions

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $84,700,000 of 10-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $96,211,281. 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 with a compound transaction, 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 on July 1, Year1 Cash 96,211,281 Premium on Bonds Payable 11,511,281V Bonds Payable 84,700,000