Question
Problem 10-12A On January 1, 2019, Pharoah Company issued $3,780,000 face value, 6%, 10-year bonds at $3,514,509. This price resulted in an effective-interest rate of
Problem 10-12A On January 1, 2019, Pharoah Company issued $3,780,000 face value, 6%, 10-year bonds at $3,514,509. This price resulted in an effective-interest rate of 7% on the bonds. Pharoah uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare an amortization table through December 31, 2021 (three interest periods), for this bond issue. (Round answers to 0 decimal places, e.g. 15,250.) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2019. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the payment of interest on January 1, 2020. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2020. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Problem 10-12A On January 1, 2019, Pharoah Company issued $3,780,000 face value, 6%, 10-year bonds at $3,514,509. This price resulted in an effective-interest rate of 7% on the bonds. Pharoah uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan 1, 2019 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare an amortization table through December 31, 2021 (three interest periods), for this bond issue. (Round answers to O decimal places, e.g. 15,250.) Pharoah Company Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Annual Interest Periods Interest to Be Paid Interest Expense Discount Amortization Unamortized Discount Bond Carrying Value to Be Recorded Issue date 1 $ $ 2 3 SHOW LIST OF ACCOUNTS Prepare the joumal entry to record the accrual of Interest and the amortization of the discount on December 31, 2019. (Round answers to D decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec 31, 2019 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the payment of interest on January 1, 2020. (Round answers to o decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2020. (Round answers to o decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Jan. 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2020. (Round answers to o decimal places, e.g. 15,250. Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. SUBMIT ANSWER Question Attempts: 0 of 3 used SAVE FOR LATER Earn Maximum Points available only if you answer this question correctly in your first attempt
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