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On January 1, 2020, Pharoah Company issued $2.170.000,7%, 10-year bonds at $2.329.714. This price resulted in a 6% effective interest rate on the bonds. Pharoah
On January 1, 2020, Pharoah Company issued $2.170.000,7%, 10-year bonds at $2.329.714. This price resulted in a 6% effective interest rate on the bonds. Pharoah uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. Prepare the journal entries to record the following transactions. (Round answers to decimal places, eg. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on January 1, 2020 (2) Accrual of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest on January 1, 2021 Accrual of interest and amortization of the premium on December 31, 2021. Debit Credit Date Account Titles and Explanation Jan. 1 2020 Dec 31 2020 Jan 1 2021 Dec 31. 2021 Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2021 (Round answers to decimal places, eg. 15.250. Enter account name only and do not provide descriptive information) Pharoah Company Balance Sheet (Partial) Provide the answers to the following questions. (1) What amount of interest expense is reported for 2021? [Round answers to O decimal places, eg. 15,250) Interest expense reported for 2021 $
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