Current Attempt in Progress Selected transactions on the books of Pharoah Corporation follow: May 1, 2023 Bonds payable with a par value of $700,000, which are dated January 1, 2023, are sold at 109 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 11, and mature on January 1, 2033. (Use ar Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount o Interest on the bonds is paid Par value bonds of $420,000 are repurchased at 105 plus accrued interest and are retired. (Bond premium is to be ar Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortize Dec. 31 Jan 1, 2024 April 1 Dec. 31 (a) Assume that Pharoah follows ASPE. Prepare the journal entries for the transactions above. (Round answers to O decimal places, eg 5,275. 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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Do not round intermediate calculations) Date Account Titles and Explanation (To record accrued interest expense) (To amortize the premium) (To amortize the premium) Debit Credit (To record reacquisition of bonds) (To record accrued interest expense) (To amortize the premium)
Current Attempt in Progress Selected transactions on the books of Pharoah Corporation follow: May 1, 2023 Bonds payable with a par value of $700,000, which are dated January 1, 2023, are sold at 109 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 11, and mature on January 1, 2033. (Use ar Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount o Interest on the bonds is paid Par value bonds of $420,000 are repurchased at 105 plus accrued interest and are retired. (Bond premium is to be ar Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortize Dec. 31 Jan 1, 2024 April 1 Dec. 31 (a) Assume that Pharoah follows ASPE. Prepare the journal entries for the transactions above. (Round answers to O decimal places, eg 5,275. 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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Do not round intermediate calculations) Date Account Titles and Explanation (To record accrued interest expense) (To amortize the premium) (To amortize the premium) Debit Credit (To record reacquisition of bonds) (To record accrued interest expense) (To amortize the premium)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Selected transactions on the books of Pharoah Corporation follow:
May 1, 2023
Dec. 31
Jan. 1, 2024
April 1
Dec. 31
4
Bonds payable with a par value of $700,000, which are dated January 2023, are sold at 109 plus accrued interest.
They are coupon bonds, bear interest at 12% ( payable annually at January 1), and mature on January 1, 2033. (Use ar
Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount o
Interest on the bonds is paid.
Par value bonds of $420,000 are repurchased at 105 plus accrued interest and are retired. (Bond premium is to be ar
Adjusting entries are made to record the accrued interest on the bonds, and the proper amount
Date
(a) Assume that Pharoah follows ASPE. Prepare the journal entries for the transactions above. (Round answers to 0 decimal places, e.g.
5,275. 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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before
credit entries. Do not round intermediate calculations.)
Account Titles and Explanation
(To record accrued interest expense)
(To amortize the premium)
(To amortize the premium)
premium amortize
Debit
Credit
(To record reacquisition of bonds)
(To record accrued interest expense)
(To amortize the premium)
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