Chapter 11 Liabilities: Bonds Payable will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? (Appendix 1) Compute the price of $42,309,236 received for the bonds by using the present 5. value e tables in Appendix A at the end of the text. (Round to the nearest dollar.) PR 11-2B Bond premium, entries for bonds payable transactions Rodgers $65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10 Obj. 2 Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued 94977 receiving cash of $73,100,469. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. LEDGER Instructions . Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. 2. Journalize the entries to 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.) B. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. 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? 5. (Appendix 1) Compute the price of $73,100,469 received for the bonds by using the present value tables in Appendix A at the end of the text. (Round to the nearest dollar) Entries for bonds payable, including bond redemption ing transactions were completed by Montague Inc., whose fiscal year is the calendar Obj. 2 PR 11-38 484 The following year: Year 1 Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment Closed the interest expense account. ATE 1, Dec 31. 31. Year 2 June 30 Paid tho cominnual interest on the bonds. The bond discount amortization of $390,852 is combined