Question: Pharoah Corporation issued 3 , 9 0 0 , five year, 4 % bonds at 1 0 6 on January 1 , 2 0 2

Pharoah Corporation issued

3, 900,

five year,

4 %

bonds at

106

on January

1, 2023 .

Interest is paid annually. Each $

1, 000

bond carried one detachable warrant allowing

the holder to purchase

100

common shares in Pharoah at $

11

per share, the price at which Pharoah shares were trading on the day of the sale of the bonds. Similar

straight bonds trading on the open market paid

6 % .

On June

30, 2023, 780

of the bond holders exercised the options to buy the shares.

Prepare the journal entries to record these events.

(

Round present value factor calculations to

5

decimal places, e

.

. 1.25124

and the final answer to

0

decimal places e

.

.

58, 971 .

Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no

entry is required, select

"

No Entry" for the account titles and enter

0

for the amounts. List all debit entries before credit entries.

)

Date

Account Titles and Explanation

Debit

CreditPlease fill the blank and whos

Pharoah Corporation issued 3,900, five year, 4% bonds at 106 on

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