Bond premium, entries for bonds payable transactionsRodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $62,200,000 of 10-year, 10% bonds at a market (effective) interest rate of8%, receiving cash of $70,653,384. 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, 2011.2011 July 12. 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.2011 Dec. 3138b. The interest payment on June 30, 2012, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar.2012 June 30PreviousNext 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.20Y1 Dec. 31b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar.2012 June 303. 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?5. Compute the price of $70,653,384 received for the bonds by using the Present value at compound interest, and Present value of an annuity. Round your PV valuesto 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.UPresent value of the face amountPresent value of the semi-annual interest paymentsProceeds of bond issue

The bond premium may be amortized using the straight-line method or effective-interest method. The…

Bond premium, entries for bonds payable transactions Rodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $62,200,000 of 10-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $70,653,384. 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, 2011. 8 2011 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on Dec ber 31, 2011, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. 2011 Dec. 31 b. The interest payment on June 30, 2012, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. €88 2012 June 30 Previous Next

Bond premium, entries for bonds payable transactions Rodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $62,200,000 of 10-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $70,653,384. 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, 2011. 8 2011 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on Dec ber 31, 2011, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. 2011 Dec. 31 b. The interest payment on June 30, 2012, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. €88 2012 June 30 Previous Next

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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