Pharoah Corporation issued3,600,9%, 5-year, $1,000bonds dated January 1, 2020, at100. Interest is paid each January 1. (a)
Question:
Pharoah Corporation issued3,600,9%, 5-year, $1,000bonds dated January 1, 2020, at100. Interest is paid each January 1.
(a)
Prepare the journal entry to record the sale of these bonds on January 1, 2020.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Janaury 1, 2020
(b)
Prepare the adjusting journal entry on December 31, 2020, to record interest expense.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
December 31, 2020
(c)
Prepare the journal entry on January 1, 2021, to record interest paid.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
January 1, 2021
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