Printem Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1 Year 1, Rodgers Corporation issued $79,200,000 of 10 year, 10% bonds at a market (effective interest rate of 8%, receiving cash of $89,963,795. Interest on the bonds is payable semiannually on December 31 and Sune 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 Year 1 Cash 89.963.795 Premium on Bonds Payable Bonds Payable 10.763.795 79.200.000 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in isse price is reflected in a premium court The straight-line method of amortization provides equal amounts of amortization over the life of the bond 8. 2. Journalize the entries to record the following: The first semiannual interest payment on December 31, Year 1, and the amortization of the band premium, using the straight-line method. Round to the nearest dolaz Interest Expense Premium on Bonds Payable X Cash 3.960.000 Feedback Check My Work Partially correct Previous Next Check My Work Save and it Submit Assignment for Grading All work saved 20 AM ebook Sinprogressere Calculator Printem 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 do Interest Expense Premium on Bonds Payable X lll Cash 3.960,000 Feedback Check My Work Partially correct 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 $89,963,795 received for the bonds by using Table 1, Table 2. Table 3 and Table 4. 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 Feedback Check My Work Partially correct Feedback Check My Work Partially correct