Rodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $24,800,000 of...

 

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Rodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $24,800,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $28,025,902. 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. 20Y1 July 1 Cash Premium on Bonds Payable Bonds Payable Correct Feedback 24,800,000 X 3,225,902 25,902 X Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. 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. 20Y1 Dec. 31 Interest Expense Check My Work 1 more Check My Work uses remaining. Previous Rodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $24,800,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $28,025,902. 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. 20Y1 July 1 Cash Premium on Bonds Payable Bonds Payable Correct Feedback 24,800,000 X 3,225,902 25,902 X Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. 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. 20Y1 Dec. 31 Interest Expense Check My Work 1 more Check My Work uses remaining. Previous

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2 Journalize the entries to record the following a The first semiannual ... View the full answer