Exercise 10-9 On January 1, Pharoah Company issued $422,000, 7%, 10-year bonds a

Question

Exercise 10-9 On January 1, Pharoah Company issued $422,000, 7%, 10-year bonds at face value. Interest is payable annually on January 1 swer is partially correct. Try again. Prepare journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 422000 Notes Payable 422 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 t Expense t Payable SHOW LIST OF ACCOUNTS LINK TO TEXT swer is partially correct. Try again. Prepare journal entry to record the payment of interest on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Interest Expense Interest Payable Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

1 Journal Entry to record the issuance of the bonds Date Account Titles and Explanation Debit Credit Jan. 1 Cash 422000 Bonds payable 422000 Issuance of 7%, 10- Year Bonds 2 Journal Entry to record the Accrual of Interest on December 31 Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 29540 Interest Payable 29540 Accrual of Interest on 7% bonds ($422,000*7%) 3 Journal Entry to record the payment of Interest on January 1 Date Account Titles and Explanation Debit Credit Jan. 1 Interest Payable 29540 Cash 29540 Payment of Interest on bonds

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.