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5.Prepare the necessary journal entries to record the following transactions relating to the long-term issuance...

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Accounting

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5.Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of PA Co.: March 1 Issued $4,000,000 face value PA Co. second mortgage, 8% bonds for $4,360,800, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on PA Co. bonds. (Use straight-line amortization of any premium or discount.) December 1 Paid semiannual interest on PA Co. bonds and purchased $2,000,000 face value bonds at the call price in accordance with the provisions of the bond indenture

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