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Pharoah Corporation issued a 4-year, $32,000, 4% note to Greenbush Company on January 1, 2025, and received a computer that normally sells for $24,224.
Pharoah Corporation issued a 4-year, $32,000, 4% note to Greenbush Company on January 1, 2025, and received a computer that normally sells for $24,224. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare Pharoah's journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 1,2025 Equipment Discount on Notes Payable Notes Payable 11,2025 Interest Expense Discount on Notes Payable Cash Debit 24224 7776 2907 Credit 32000
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