# Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued \$65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of \$73,100,469. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.Instructions1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.2. Journalize the entries to record the following:a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.b. The interest payment on June 30, Year 2, and the amortization of the bond premium,using the interest method. Round to the nearest dollar.3. Determine the total interest expense for Year 1.

Question
10 views

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued \$65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of \$73,100,469. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Instructions

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.
b. The interest payment on June 30, Year 2, and the amortization of the bond premium,using the interest method. Round to the nearest dollar.
3. Determine the total interest expense for Year 1.

check_circle

Step 1

1.

Prepare journal entry for cash proceeds from the issuance of the bonds on July 1, Year 1.

Step 2

2a.

Prepare journal entry for first semiannual interest payment and amortization of discount on bonds

Step 3

2b.

Prepare journal entry for second interest paymen...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in