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Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $55,000,000 of 20-year, 14% bonds at a market (effective) interest rate of

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Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $55,000,000 of 20-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $63,262,100. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, 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. 20Y1 July 1 111 Line 1 Choices: Bonds Payable Cash Interest Expense Interest Payable Premium On Bonds Payable Line 2 Choices: Accounts Payable Cash Interest Expense Interest Payable Premium On Bonds Payable Line 3 Choices: Bonds Payable Cash Interest Expense Interest Payable Notes Payable 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar. 20Y1 Dec. 31 III III Line 1 Choices: Bonds Payable Cash Interest Expense Interest Payable Notes Payable Line 2 Choices: Bonds Payable Cash Interest Payable Interest Receivable Premium On Bonds Payable Line 3 Choices: Bonds Payable Cash Interest Expense Interest Payable Premium On Bonds Payable b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the interest method. Round to the nearest dollar. 20Y2 June 30 II. Line 1 Choices: Bonds Payable Cash Interest Expense Interest Payable Interest Receivable Line 2 Choices: Accounts Payable Bonds Payable Cash Interest Payable Premium On Bonds Payable Line 3 Choices: Bonds Payable Cash Interest Expense Interest Payable Premium On Bonds Payable 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. $

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