Pharoah Company issued $450,000, 6%, 20-year bonds on January 1, 2020, at 101. Interest is payable...

  

Transcribed Image Text:

Pharoah Company issued $450,000, 6%, 20-year bonds on January 1, 2020, at 101. Interest is payable annually on January 1. Pharoah uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 454500 450000 4500 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2020. (Credit ac Date Account Titles and Explanation Debit Credit Dec. 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the payment of interest on January 1, 2021. (Credit account titles are automatically Date Account Titles and Explanation Debit Credit Jan. 1, 2021 Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2040 Pharoah Company issued $450,000, 6%, 20-year bonds on January 1, 2020, at 101. Interest is payable annually on January 1. Pharoah uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 454500 450000 4500 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2020. (Credit ac Date Account Titles and Explanation Debit Credit Dec. 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the payment of interest on January 1, 2021. (Credit account titles are automatically Date Account Titles and Explanation Debit Credit Jan. 1, 2021 Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2040

Answer rating: 100% (QA)

Answer DebitS Credit 454500 Date Account Titles and Explanation Jan ... View the full answer