Pharoah Electric sold 3,950,000, 8%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Pharoah Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103.

Prepare the journal entry to record the issuance of the 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
Jan. 1, 2020

Prepare a bond premium amortization schedule for the first 4 interest periods.

Annual Interest Periods		(A) Interest to Be Paid (10%* 3,00,000)		(B) Interest Expense to Be Recorded (A) - (C)		(C) Premium Amortization (120,000*10%)		(D) Bond Carrying Value
Issue date
1
2
3
4