Pharoah Inc. issues $$3,000,000,5-$year, $14\%$ bonds at $104,$ with interest payable annually on January $1.$ The straight$-$line method is

used to amortize bond premium.

$($a$)$

Prepare the journal entry to record the sale of these bonds on January $1,2027$: $($Credit account titles are automatically indented

when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

Premium on Bonds Payable

Cash

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List of Accounts