Chapter 14 HMWK eBook 2. TMM. 14.02 3. TMM. 14.03 Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $39,400,000 of 10-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $43,918,959. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. 4. TMM. 14.05 5. TMM. 14.App2 Required: For all journal entries, If an amount box does not require an entry, leave it blank. 6. PE. 14.02.ALGO 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. 7. PE.14.03.ALGO Cash 8. PE.14.04.ALGO Premium on Bonds Payable 9 Bonds Payable 9. PE. 14.05.ALGO Feedback 10. PE.14.06.ALGO Check My Work 11. PE.14.07.ALGO 12. EX.14.05.ALGO 2. Journalize the entries to record the following: 13. EX.14.06.ALGO 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. 14. EX.14.07.ALGO Interest Expense 15. EX.14.22.APP1.ALGO Premium on Bonds Payable Cash 16. EX.14.21.APP1 Feedback 17. PR. 14.02.ALGO Check My Work Chapter 14 HMWK eBook ? 2. TMM. 14.02 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. TMM.14.03 Interest Expense 4. TMM. 14.05 Premium on Bonds Payable 5. TMM. 14.App2 Cash 6. PE.14.02.ALGO Feedback 7. PE.14.03.ALGO Check My Work 8. PE. 14.04.ALGO 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 9. PE. 14.05.ALGO 10. PE.14.06.ALGO 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 11. PE.14.07.ALGO 5. Compute the price of $43,918,959 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. 12. EX.14.05.ALGO Present value of the face amount 13. EX.14.06.ALGO Present value of the semiannual interest payments . . 14. EX.14.07.ALGO Price received for the bonds 15. EX.14.22.APP1.ALGO Feedback . . 16. EX.14.21.APP1 Check My Work 17. PR. 14.02.ALGO . Feedback 18. PR. 14.03.ALGO Check My Work