On January 1, 2025, Pearl Corporation issued $470,000 of 7% bonds, due in 8 years. The...

Transcribed Image Text:

On January 1, 2025, Pearl Corporation issued $470,000 of 7% bonds, due in 8 years. The bonds were issued for $499,520, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Pearl uses the effective-interest method. (Round answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. (a) (b) (c) Date Account Titles and Explanation Debit Cre On January 1, 2025, Pearl Corporation issued $470,000 of 7% bonds, due in 8 years. The bonds were issued for $499,520, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Pearl uses the effective-interest method. (Round answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. (a) (b) (c) Date Account Titles and Explanation Debit Cre