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Appendix 1 and Appendix 2 Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium Rodgers Corporation produces and sells football equipment. On July 1, 2016, Rodgers Corporation issued 865,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of 873,100,469. 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, 2016, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016.|

BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter
Section
Chapter 14, Problem 14.6BPR
Textbook Problem

Appendix 1 and Appendix 2

Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium

Rodgers Corporation produces and sells football equipment. On July 1, 2016, Rodgers Corporation issued 865,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of 873,100,469. 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, 2016, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.)

b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.)

3. Determine the total interest expense for 2016.|

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Chapter 14 Solutions

Accounting (Text Only)
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Ch. 14 - Alternative financing plans Owen Co. is...Ch. 14 - Alternative financing plans Brower co. is...Ch. 14 - Issuing bonds at face amount On January 1, the...Ch. 14 - Issuing bonds at face amount On January 1, the...Ch. 14 - Issuing bonds at a discount On the first day of...Ch. 14 - Issuing bonds at a discount On the first day of...Ch. 14 - Discount amortization Using the bond from Practice...Ch. 14 - Discount amortization Using the bond from Practice...Ch. 14 - Issuing bonds at a premium On the first day of the...Ch. 14 - Issuing bonds at a premium On the first day of the...Ch. 14 - Premium amortization Using the bond from Practice...Ch. 14 - Premium amortization Using the bond from Practice...Ch. 14 - A Redemption of bonds payable A 1,500,000 bond...Ch. 14 - Redemption of bonds payable A 500,000 bond issue...Ch. 14 - Journalizing installment notes On the first day of...Ch. 14 - Journalizing installment notes On the first day of...Ch. 14 - Number of times interest charges are earned Berry...Ch. 14 - Number of times interest charges are earned...Ch. 14 - Effect of financing on earnings per share Domanico...Ch. 14 - Evaluate alternative financing plans Based on the...Ch. 14 - Corporate financing The financial statements for...Ch. 14 - Bond price United States Steel's 7.375% bonds due...Ch. 14 - Entries for issuing bonds Gabriel Co. produces and...Ch. 14 - Entries for issuing bonds and amortizing discount...Ch. 14 - Entries for issuing bonds and amortizing premium...Ch. 14 - Entries for issuing and calling bonds; loss Adele...Ch. 14 - Entries for issuing and calling bonds; gain Emil...Ch. 14 - Entries for installment note transactions On the...Ch. 14 - Entries for installment note transactions On...Ch. 14 - Entries for installment note transactions On...Ch. 14 - Reporting bonds At the beginning of the current...Ch. 14 - Number of times interest charges are earned The...Ch. 14 - Number of times interest charges are earned...Ch. 14 - Number of times interest charges are earned...Ch. 14 - Present value of amounts due Tommy John is going...Ch. 14 - Present value of an annuity Determine the present...Ch. 14 - Appendix 1 Present value of an annuity On January...Ch. 14 - Appendix 1 Present value of an annuity Assume the...Ch. 14 - Present value of bonds payable; discount Pinder...Ch. 14 - Present value of bonds payable; premium Moss Co....Ch. 14 - Amortize discount by interest method On the first...Ch. 14 - Appendix2 Amortize premium by interest method...Ch. 14 - Compute bond proceeds, amortizing premium by...Ch. 14 - Compute bond proceeds, amortizing discount by...Ch. 14 - Effect of financing on earnings per share Three...Ch. 14 - Bond discount, entries for bonds payable...Ch. 14 - Bond premium, entries for bonds payable...Ch. 14 - Entries for bonds payable and installment note...Ch. 14 - Appendix 1 and Appendix 2 Bond discount, entries...Ch. 14 - Appendix 1 and Appendix 2 Bond premium, entries...Ch. 14 - Effect of financing on earnings per share Three...Ch. 14 - Bond discount, entries for bonds payable...Ch. 14 - Bond premium, entries for bonds payable...Ch. 14 - Entries for bonds payable and installment note...Ch. 14 - Appendix 1 and Appendix 2 Bond discount, entries...Ch. 14 - Appendix 1 and Appendix 2 Bond premium, entries...Ch. 14 - General Electric bond issuance General Electric...Ch. 14 - Ethics and professional conduct in business Solar...Ch. 14 - Present values Alex Kelton recently won the...Ch. 14 - Preferred stock vs. bonds Xentec Inc. has decided...Ch. 14 - Financing business expansion You hold a 25% common...Ch. 14 - Times interest earned The following financial data...

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