On September $1,2024,$ Pharoah Corporation issued $$575,000$ of $10-$year, $3\%$ bonds at $97.$ Interest is payable semi$-$annually on September $1$ and March $1.$ Pharoah's fiscal year end is February $28.$

$($a$)$

Your answer is correct.

Is the market rate of interest higher or lower than $3\%?$

Market interest rate is than $3\%.$

Your answer is partially correct.

Record the issue of the bonds on September $1,2024.($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles

Debit $.$

Credit

Sept. $1$

Cash

Bonds Payable

$($c$)$

Record the accrual of interest on February $28,2025,$ assuming the semi$-$annual amortization amount for this interest period is $$972.($List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles

Debit

Credit

Feb. $28$