QUESTION $1($Marks $12)$

On $1$ August $20$X$6,$ Rogers Corp issued bonds with the following characteristics:

a$.$ $$50,000$ total face value

b$.12\%$ nominal rate

c$.16\%$ yield rate

d$.$ Interest dates are $1$ February, $1$ May, $1$ August, and $1$ November

e$.$ Bond date is $31$ October $205$

f$.$ Maturity date is $1$ November $20$X$10$

$($Hint Quarterly Interest$)$

Required:

Provide all entries required for the bond issue through $1$ February $20$X$7$ using the effective interest method. The company has a $31$ December year$-$end.

On $11$ June $20$X$8,$ Rogers Corp retired $$20,000$ of bonds at $98$ through an open market purchase. Provide the entries to update the bond accounts in $20$ X $8($entries have been completed through $1$ May $20$X$8)$ for this portion of the bond and to retire the bonds.