Pharoah Company issued $457,500, 9%, 15?year bonds on December 31, 2016, for $439,200. Interest is payable annually on December 31. Pharoah uses the straight-line method to amortize bond premium or discount.

Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2017. (c) The redemption on of the bonds at maturity, asking interest for the last interest period has been paid and recorded.

B?ossom Company issued $483,000, 9%, 30?year bonds on January 1, 2017, at 105. Interest Is payatOe annually on January 1. Bossom uses stra ght-line amortization for bond premium or discount.

Prepare the Jourra' entries to record the following events. (Credit account titles arc automatically indented when amount is entered. Do not indent manually.)

(a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. ( (d) The redempt on of the bonds at matunty, assuming interest for the last interest period has been pa d and recorded.

Transcribed Image Text:

No. Date (a) Dec. 31, 2016 (b) Dec. 31, 2017 (c) Dec. 31, 2031 Account Titles and Explanation Debit Credit No. Date (a) Jan. 1, 2017 (b) Dec. 31, 2017 (c) Jan. 1, 2018 (d) Jan. 1, 2047 Account Titles and Explanation Debit Credit No. Date (a) Dec. 31, 2016 (b) Dec. 31, 2017 (c) Dec. 31, 2031 Account Titles and Explanation Debit Credit No. Date (a) Jan. 1, 2017 (b) Dec. 31, 2017 (c) Jan. 1, 2018 (d) Jan. 1, 2047 Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

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