Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, Year 1. Rodgers Corporation issued $41,800,000 of 10-year, 11% bonds at a market (effective) interest rate of 10%, receiving cash of $44,404,623. Interest on the bonds is payable semiannually on December 31 and June 20. 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. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. Feedback Check My Your 2. Joumalize the entries record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. Interest Expense Premium on Bonds Payable Cash 111 dll Feedback Check My Work b. The interest payment on lune 30, Year 2, and the amartization of the band premium, using the straight-line method. Round to the nearest dollar. Interest Expense Premium on Bonds Payable lil lll Cash 3. Determine the total interest expense for Year 1. Round to the nearest dollar. $ 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes 5. Compute the price of $44,404,623 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