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IF YOU CANT READ THE IMAGE PRESS OPEN IMAGE IN A NEW TAB TO READ Exercise 14-9 on un 3D 2017, phar a company issued
IF YOU CANT READ THE IMAGE PRESS OPEN IMAGE IN A NEW TAB TO READ
Exercise 14-9 on un 3D 2017, phar a company issued $4,8 0,00 face value of 139s, 20 vear bonds at $5 161 102 a y d cf 1296. pharnah uses the effective-interest method to an ar 7e bond premium or discount. The bonds pay sem annua nterest on ]une 3 and December 31 Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2017 (2) The payment of Interest and the amortization of the premium on December 31, 2017 (3) The payment of interest and the amortization of the premium on June 30, 2018. (4) The payment of interest and the amortization of the premium on December 31, 2018 No. Date Account Titles and Explanation Debit Credit (1) une 30, 2017 (2) December 31, 2017 (3) lune 30, 2018 (4) December 31, 2018 LIST OF ACCOUNTS Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet. (Round answers to O decimal places, e.g. 38,548.) Pharoah Company Balance Sheet SHOW LIST OF ACCOUNTS LINK TO TEXT Provide the answers to the following questions (1) What amount of interest expense is reported for 2018? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense reported for 2018 (2) Will the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2018 will be (3) Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond (4) Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? the amount that would be reported if the straight-line method of amortization were used The total bond interest expense for the life of the bond will be the total interest expense if the straight-line method of amortization were used. Accumulated Depreciation Accumulated Depreciation-Machinery Allowance for Doubtful Accounts Bad Debt Expense Bond Issue Expense Bonds Payable Buildings Cash Common Stock Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Interest Payable Interest Receivable Interest Revenue Land Loss on Disposal of Land Loss on Redemption of Bonds Machinery Mortgage Payable No Entry Notes Payable Notes Receivable Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Premium on Bonds Payable Sales Revenue Unamortized Bond Issue Costs Unearned Revenue Unearned Sales Revenue Unrealized Holding Gain or Loss - Income -EquipmentStep by Step Solution
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