On January 1, 2023, Pharoah Corporation issued $782,000 of 7% bonds that are due in 11 years. The bonds were issued for $844,313 and pay interest each July 1 and January 1. The company uses the effective interest method. Assume an effective rate of 6%. (a) Prepare Pharoah Corporation's journal entry for the January 1 issuance. (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. List debit entry before credit entry.) Account Titles and Explanation Debit Credit

On January 1, 2023, Pharoah Corporation issued $782,000 of 7% bonds that are due in 11 years. The bonds were issued for $844,313 and pay interest each July 1 and January 1. The company uses the effective interest method. Assume an effective rate of 6%. (a) Prepare Pharoah Corporation's journal entry for the January 1 issuance. (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. List debit entry before credit entry.) Account Titles and Explanation Debit Credit

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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