Prepare journal entries to record the following transactions relating to long-term bonds of Pharoah, Inc. (a) Your Answer Correct Answer (Used) On June 1, 2024, Pharoah, Inc. issued $7,200,000, 6% bonds for $7,056,900, which includes accrued interest. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2034. The bonds are callable at 102. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Interest Expense Your answer is partially correct. Debit Credit 7,056,900 287,100 7,200,000 144,000 On August 1, 2024, Pharoah paid interest on the bonds and recorded amortization. Pharoah uses straight-line amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Discount on Bonds Payable eTextbook and Media List of Accounts Debit 230355 Credit 2160 143