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Question 2 of 4 < > View Policies -/30 Current Attempt in Progress On January 1, 2020, Pharoah Industries Ltd. issued 1,500,000 face value,
Question 2 of 4 < > View Policies -/30 Current Attempt in Progress On January 1, 2020, Pharoah Industries Ltd. issued 1,500,000 face value, 4%, 10-year bonds at 1,384,174. This price resulted in an effective-interest rate of 5% 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, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation January 1,2020 eTextbook and Media List of Accounts Debit Credit Prepare an amortization table through December 31, 2022 (three interest periods) for this bond issue. (Round answers to 0 decimal places, eg. 15,250) LOCK INDUSTRIES LTD. Bond Discount Amortization Effective-Interest Method-Annual Interest Payments 4% Bonds Issued at 5% Annual Interest Periods (B) (A) Interest Expense to Be Interest to Be Paid Recorded Issue date 1 2 3 eTextbook and Media List of Accounts (C) Discount Amortization Bon (B)-(A) 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, eg. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2020 eTextbook and Media List of Accounts Debit Credit Prepare the journal entry to record the payment of interest on January 1, 2021. (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 Jan. 1 eTextbook and Media List of Accounts Debit Credit Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2021. (Round answers to O decimal places, eg. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2021 eTextbook and Media List of Accounts Debit Credit
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