Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Please answer the questions I got wrong. Band preiniurn, entries for bonds payable transactions Rodgers Corporation produces and selis footbail equipment. On Jily 1, 20Y1,

Please answer the questions I got wrong.
image text in transcribed
image text in transcribed
image text in transcribed
Band preiniurn, entries for bonds payable transactions Rodgers Corporation produces and selis footbail equipment. On Jily 1, 20Y1, Rodgers issued $65,000,000 of 10 Year, 12% bonds at a market (effective) interest rate of 10\%s, recelving cash of $73,100,469. Interest on the bonds is paysble semiannually en 0ecember 31 and June 30 . The facal year af the company is the calendar. yeac Aequiredt For all journal entries, if an amount box does not require an entry, ieave it blanic. 1. Journalire the entry to record the amount of cash proseeds from the issiance of the bonds an July 1 , 26yi. 20ri. Juit Festack F Coneak My wor Bonds Poyabie is always recorded at face valoe, Any defference in issue price is reflected in a premium or discoust account: 2. Journalie the entries to record the followingt a. The first semiannual interest payment on Docember 31,20y1, and the anpotication of the bond premium, using the straight-line method. Round to the nearest. dollar. 2. Journalze the entries to ropard the following: a. The first semiannuat interest payment en Decembor 31, 20yi, and the amortiation of the bond premium, using the straight-jine methed. Reund to the neareat. dollarit feensen * Crest Uy wir The straight-line method of amortization provides equal amounts of amortizatian over the life of the bond. b. The interest payment an June 30,20y2, and the amortization of the bond premium, esing the straight-ine method. Round to the aearest dollar. fectas T Ceci Nr wex The stroight-line method of amoctization provides equal amounts of amortization aver the life of the bend. The straight-line method of acmprtization provides equal amounts of arivartization over the If of the hond. 3. Determine the total interest oxpense for 20x1. Round to the nearest dollar. x 4. Wiil the bond proceeds always be greater than the face amount of the bonds when the centract rote is greater than the market refe af intereat? 5. Compute the price of $73,100,469 received for the bonds by using the Present value at compound interest, and Present value of an annuity Round yeur Pr values to 5 decimal places and the final answers to the nearest dollar. resedtack Ciect My Wan Calculate the present value of the face amount of the bonds by uang the the Prenent Value of 11 tasle. Galculate the present value af the semiantual interest payments by using the Present value of an Annulty of $1 table. Fethas Prack Ay Wor Partially correa

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Control And Audit

Authors: Ron Weber

1st Edition

0139478701, 978-0139478703

More Books

Students explore these related Accounting questions