On January 1, 2017, Pharoah Corporation purchased a newly issued $1,150,000 bond. The bond matured on December

Fantastic news! We've Found the answer you've been seeking!

Question:

On January 1, 2017, Pharoah Corporation purchased a newly issued $1,150,000 bond. The bond matured on December 31, 2019, and paid interest at 6% every June 30 and December 31. The market interest rate is 8%. Pharoah's fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date.
Prepare the journal entries on the books of Pharoah Corporation for each of the following dates.
●January 1, 2017

●June 30, 2017

●October 31, 2017

●December 31, 2017

●December 31, 2019