Question
On January 1, 2022, Pharoah Company issued $3,780,000 face value, 6%, 10-year bonds at $3,514,509. This price resulted in an effective-interest rate of 7% on
On January 1, 2022, Pharoah Company issued $3,780,000 face value, 6%, 10-year bonds at $3,514,509. This price resulted in an effective-interest rate of 7% on the bonds. Pharoah uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.
Prepare the journal entry to record the payment of interest on January 1, 2023.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
