Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $77,800,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $87,495,638. 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. fill in the blank 4ad6ca024fc305d_2 fill in the blank 4ad6ca024fc305d_3 fill in the blank 4ad6ca024fc305d_5 fill in the blank 4ad6ca024fc305d_6 fill in the blank 4ad6ca024fc305d_8 fill in the blank 4ad6ca024fc305d_9 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 nearest dollar. fill in the blank e24f7f00cfe6faf_2 fill in the blank e24f7f00cfe6faf_3 fill in the blank e24f7f00cfe6faf_5 fill in the blank e24f7f00cfe6faf_6 fill in the blank e24f7f00cfe6faf_8 fill in the blank e24f7f00cfe6faf_9 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. fill in the blank 9b610b01e007011_2 fill in the blank 9b610b01e007011_3 fill in the blank 9b610b01e007011_5 fill in the blank 9b610b01e007011_6 fill in the blank 9b610b01e007011_8 fill in the blank 9b610b01e007011_9 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. $fill in the blank 7ee96102c06c017_1 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? 5. Compute the price of $87,495,638 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount $fill in the blank 7ee96102c06c017_3 Present value of the semi-annual interest payments fill in the blank 7ee96102c06c017_4 Price received for the bonds $fill in the blank 7ee96102c06c017_5

Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $77,800,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $87,495,638. 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. fill in the blank 4ad6ca024fc305d_2 fill in the blank 4ad6ca024fc305d_3 fill in the blank 4ad6ca024fc305d_5 fill in the blank 4ad6ca024fc305d_6 fill in the blank 4ad6ca024fc305d_8 fill in the blank 4ad6ca024fc305d_9 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 nearest dollar. fill in the blank e24f7f00cfe6faf_2 fill in the blank e24f7f00cfe6faf_3 fill in the blank e24f7f00cfe6faf_5 fill in the blank e24f7f00cfe6faf_6 fill in the blank e24f7f00cfe6faf_8 fill in the blank e24f7f00cfe6faf_9 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. fill in the blank 9b610b01e007011_2 fill in the blank 9b610b01e007011_3 fill in the blank 9b610b01e007011_5 fill in the blank 9b610b01e007011_6 fill in the blank 9b610b01e007011_8 fill in the blank 9b610b01e007011_9 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. $fill in the blank 7ee96102c06c017_1 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? 5. Compute the price of $87,495,638 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount $fill in the blank 7ee96102c06c017_3 Present value of the semi-annual interest payments fill in the blank 7ee96102c06c017_4 Price received for the bonds $fill in the blank 7ee96102c06c017_5

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Bond Premium, Entries for Bonds Payable Transactions

Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $77,800,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $87,495,638. 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.

		fill in the blank 4ad6ca024fc305d_2	fill in the blank 4ad6ca024fc305d_3
		fill in the blank 4ad6ca024fc305d_5	fill in the blank 4ad6ca024fc305d_6
		fill in the blank 4ad6ca024fc305d_8	fill in the blank 4ad6ca024fc305d_9

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 nearest dollar.

		fill in the blank e24f7f00cfe6faf_2	fill in the blank e24f7f00cfe6faf_3
		fill in the blank e24f7f00cfe6faf_5	fill in the blank e24f7f00cfe6faf_6
		fill in the blank e24f7f00cfe6faf_8	fill in the blank e24f7f00cfe6faf_9

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.

		fill in the blank 9b610b01e007011_2	fill in the blank 9b610b01e007011_3
		fill in the blank 9b610b01e007011_5	fill in the blank 9b610b01e007011_6
		fill in the blank 9b610b01e007011_8	fill in the blank 9b610b01e007011_9

3. Determine the total interest expense for 20Y1. Round to the nearest dollar.
$fill in the blank 7ee96102c06c017_1

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?

5. Compute the price of $87,495,638 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount	$fill in the blank 7ee96102c06c017_3
Present value of the semi-annual interest payments	fill in the blank 7ee96102c06c017_4
Price received for the bonds	$fill in the blank 7ee96102c06c017_5

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