Question
In: Accounting
On June 30, 2020, Pharoah Company issued $4,180,000 face value of 13%, 20-year bonds at $4,494,460,...
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Solutions
Expert Solution
Journal entries
| No | Date | Accounts and explanation | Debit | Credit |
| 1 | June 30,2020 | Cash | 4494460 | |
| Bonds payable | 4180000 | |||
| Premium on bonds payable | 314460 | |||
| 2 | Dec 31,2020 | Interest expense (4494460*12%*6/12) | 269668 | |
| Premium on bonds payable | 2032 | |||
| Cash (4180000*13%*6/12) | 271700 | |||
| 3 | June 30,2021 | Interest expense (4492428*6%) | 269546 | |
| Premium on bonds payable | 2154 | |||
| Cash | 271700 | |||
| 4 | Dec 31,2021 | Interest expense (4490274*6%) | 269416 | |
| Premium on bonds payable | 2284 | |||
| Cash | 271700 | |||
ekkarill92 answered 1 year agoRelated Solutions
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Partially correct answer iconYour answer is partially
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Prepare the journal entries to record the following
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