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I need help with the Bond Amortization Schedule and journal entries (calculations). Can you please provide steps/work? Thank you Pharoah Co. sells $413,000 of 12%
I need help with the Bond Amortization Schedule and journal entries (calculations). Can you please provide steps/work? Thank you
Pharoah Co. sells $413,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Pharoah buys back $128,030 worth of bonds for $134,030 (includes accrued interest) Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Carrying Amount of Discount Cash Interest Paid Amortized Bonds Date Expense 6/1/17 $ $ $ $ 12/1/17 6/1/18 12/1/18 6/1/19 12/1/19 6/1/20 12/1/20 6/1/21 * Difference due to rounding Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factormanually.) 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not ind calculations to 5 decimal places, e.s Date Account Titles and Explanation Debit Credit 6/1/17 12/1/17 12/31/17 6/1/18 10/1/18 (To record interest expense and premium amortization) 10/1/18 (To record buy back of bonds) 12/1/18 12/31/18 6/1/19 12/1/19Step by Step Solution
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