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Pharoah Company sold $3,400,000, 5%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1.

Pharoah Company sold $3,400,000, 5%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Pharoah Company uses the straight-line method to amortize bond premium or discount.

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds sold at 102. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020Dec. 31, 2020

Jan. 1, 2020Dec. 31, 2020

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds are sold at 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020Dec. 31, 2020

Jan. 1, 2020Dec. 31, 2020

Show balance sheet presentation for the bonds at December 31, 2020. (Enter account name only and do not provide descriptive information.)
Pharoah Company Balance Sheet (Partial)

December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020

Premium
$

$

Add Less

:

$

Pharoah Company Balance Sheet (Partial)

For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020

Discount

$

$

Add Less

:

$

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