Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Ro

Question

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers 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. Required: For all journal entries with a compound transaction, 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. Year 1 July 1

Explanation / Answer

1 Year 1 July 1 Cash 73100469      Bonds payable 65000000      Premium on Bonds payable 8100469 2a Year 1 Dec 31 Interest expense 3655023 =73100469*10%/2 Premium on Bonds payable 244977       Cash 3900000 =65000000*12%/2 Year 2 June 30 Interest expense 3642775 =(73100469-244977)*10%/2 Premium on Bonds payable 257225       Cash 3900000 3 Total interest expense = $3655023

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.