Rodgers corporation produces and sells football equipment. on july 1, 2014, 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, 2014, and the amortization of the bond premium, using the interest method. (round to the nearest dollar.)b. the interest payment on june 30, 2015, and the amortization of the bond premium, using the interest method. (round to the nearest dollar.)3. determine the total interest expense for 2014.

cash 73,100,469 debit

     bonds payable                 65,000,000 credit

    premium on bonds payable 8,100,469 credit

---to record issuance of the bonds

premium on bonds payable 244,976.55

interest expense                  3.655.023,45

                              cash         3.900.000

---to record payment at December 31th 2014          

interest expense for 2014:   3.655.023,45

premium on bonds payable  257,225.38

interest expense                  3.642.774,62

                              cash         3.900.000

---to record payment at june 30th 2015  

Explanation:

(1)

cash proceeds 73, 100,469

face value       (65,000,000)

premium             8,100,469

(2)

65,000,000 x 6% = 3.900.000 cash proceeds

73,100,469   x 5% = 3.655.023,45 interest expense

amorzation                 244,976.55

(3)

carrying value:

73,100,469 - 244,976.55 = 72.855.492,45

65,000,000     x 6%  = 3.900.000 cash proceeds

72.855.492,45 x 5% = 3.642.774,62 interes expense

amortization                    257,225.38

answer; the above statement/question is ( true);