Pharoah company invests $11,100 in 5 % fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $11,629,000. Interest is paid on January 1.<\/p>
<\/p>
Make journal entries for Pharoah company (A) record the transactions related to these bonds in 2017, assuming Pharoah does not elect the fair option; and (B) record the transaction related to these bonds in 2017, assuming that Pharoah company elects the fair value option to account for these bonds.<\/p>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting Tools for business decision making", "isbn": "470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144", "edition": "5th edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/144.jpg", "uri": "\/textbooks\/managerial-accounting-tools-for-business-decision-making-5th-edition-144", "see_more_uri": "" }, "free_related_book": { "isbn": "173562523X", "uri": "\/textbooks\/middle-school-mathematics-challenge-10-practice-tests-for-amc-8-10-mathcounts-mathcon-and-math-leagues-preparation-1st-edition-978-1735625232-380172", "name": "Middle School Mathematics Challenge 10 Practice Tests For Amc 8 10 Mathcounts Mathcon And Math Leagues Preparation", "edition": "1st Edition" }, "question_posted": "2024-06-17 07:48:35", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/hydrogen-atom-in-the-normal-state-is-located-at", "description": "A hydrogen atom in the normal state is located at a distance r = 2.5 cm from a long straight conductor carrying a current I = 10 A. 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