b.The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar.Interest ExpensePremium on Bonds Payable vCash VFeedbackV Check My WorkThe straight-line method of amortization provides equal amounts of amortization over the life of the bond.3. Determine the total interest expense for 20Y1. Round to the nearest dollar.2$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?Yes5. Compute the price of $27,440,791 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the finalanswers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.Present value of the face amount2$Present value of the semi-annual interest paymentsPrice received for the bonds Bond Premium, Entries for Bonds Payable TransactionsRodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $24,400,000 of 10-year, 12% bonds at a market (effective) interest rate of10%, receiving cash of $27,440,791. 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 on July 1, 20Y1.Cash vPremium on Bonds Payable vBonds Payable vFeedbackV Check My WorkBonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.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 straight-line method. Round to the nearestdollar.Interest ExpensePremium on Bonds Payable vCash

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b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. Interest Expense Premium on Bonds Payable v Cash v Feedback V Check My Work The straight-line method of amortization provides equal amounts of amortization over the life of the bond. 3. Determine the total interest expense for 20Y1. 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 v 5. Compute the price of $27,440,791 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final

b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. Interest Expense Premium on Bonds Payable v Cash v Feedback V Check My Work The straight-line method of amortization provides equal amounts of amortization over the life of the bond. 3. Determine the total interest expense for 20Y1. 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 v 5. Compute the price of $27,440,791 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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