User Account

All Pages

Determine the total interest expense

Assignment Help Accounting Basics
Reference no: EM131639976

Problem - Rodgers Corporation produces and sells football equipment. On July 1, 2016, 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.

Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

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 straight-line method. (Round to the nearest dollar.)

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

3. Determine the total interest expense for 2016.

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 $73,100,469 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.)

Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.

Reference no: EM131639976

Questions Cloud

Get the money for a business : Suppose you need $1 million dollars to start your Dream Business. Research ways to get the money for such a business.
Find mean amount charged increases under the no-fee offer : Is there significant evidence at the 1% level that the mean amount charged increases under the no-fee offer? State H0 and Ha and carry out a test.
Companies that negatively impact upon environment : A couple have a strong interest to ensure that they invest in a socially responsible manner. They want to ensure that they do not invest into any companies
What preconceptions did you bring to the technology : What preconceptions did you bring to the Technology, Society, and Culture course - maybe even just on the three words of the title - that might not serve you.
Determine the total interest expense : Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016. Determine the total interest expense for 2016
The levels of management in an organization : The three classifications of decisions are closely tied to the levels of management in an organization.
Discuss how will you encourage others to walk the talk : How will you encourage others to walk the talk. What skills, knowledge and attitudes/attitudes will you share with the next generation of nurses
Prepare parts explosion to support the master schedule : Prepare a parts explosion to support the master schedule. What parts should be ordered each week.
How much would it cost him to buy the annuity today : How much would it cost him to buy the annuity today? SHOW YOUR CALCULATIONS TO EARN ANY CREDIT.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd