On September 30, 2012, Pharoah Company issued 11% bonds with a par value of $600,000 due in 20 years. They were issued at 98 and were callable at 105 at any date after September 30, 2017. Because Pharoah Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $830,000 at 104; they mature in 20 years. Pharoah Company uses straight-line amortization. Interest payment dates are March 31 and September 30.

(a)

Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018. (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.)

Account Titles and Explanation	Debit	Credit
enter an account title to record the redemption of old issue	enter a debit amount	enter a credit amount
enter an account title to record the redemption of old issue	enter a debit amount	enter a credit amount
enter an account title to record the redemption of old issue	enter a debit amount	enter a credit amount
enter an account title to record the redemption of old issue	enter a debit amount	enter a credit amount
(To record the redemption of old issue)
enter an account title to record the sale of new issue	enter a debit amount	enter a credit amount
enter an account title to record the sale of new issue	enter a debit amount	enter a credit amount
enter an account title to record the sale of new issue	enter a debit amount	enter a credit amount
(To record the sale of new issue)