50.1K

Verified Solution

Link Copied!

Pharoah Company issued $$270,000$ of $8\%,20-$year bonds on January $1,2025,$ at face value. Interest is payable annually on January $1.$

$($a$)$

Prepare the journal entry to record the issuance of the bonds. $($List all debit entries before credit entries. Credit account titles are automatically indented when 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.$)$

$($b$)$

Prepare the journal entry to record the accrual of interest on December $31,2025.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date

$($c$)$

Prepare the journal entry to record the payment of interest on January $1,2026.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

$($d$)$

Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. $($List all debit entries before credit entries. Credit

account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

PLEASE ANSWER D$!!!$

Answer & Explanation Solved by verified expert

See Answer