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On January 1,2025, Pronghorn Company sold 12% bonds having a maturity value of $1,040,000 for...

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Accounting

On January 1,2025, Pronghorn Company sold 12% bonds having a maturity value of $1,040,000 for $1,206,096.74, which provides the bondholders with a 8% yield. The bonds are dated January 1,2025, and mature January 1,2030, with interest payable December 31 of each year. Pronghorn Company allocates interest and unamortized discount or premium on the effective-interest basis.
(a)
(a)
Your answer is partially correct.
Prepare the journal entry at the date of the bond issuance. (Round answer to 2 decimal places, e.g.38,548.25. 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.)
\table[[Date Account Titles and Explanation Debit],[January],[1,2025],[Bonds Payable],[Premium on Bonds Payable]]
eTextbook and Media
List of Accounts

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