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  3. on september 30, 2012, pharoah company issued 11%

On September 30, 2012, Pharoah Company issued 11% bonds with a par value of $600,000...

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Accounting

On September 30, 2012, Pharoah Company issued 11% bonds with a par value of $600,000 due in 20 years. They were issued at 98 and were callable at 105 at any date after September 30, 2017. Because Pharoah Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $830,000 at 104; they mature in 20 years. Pharoah Company uses straight-line amortization. Interest payment dates are March 31 and September 30.

Prepare the entry required on December 31, 2018, to accrue interest and amortize the premium on the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation

Debit

Credit

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

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