Ask Question
BusinessBusiness
2 June, 17:55

Pharoah Company issued $530,000 of 5-year, 5% bonds at 97 on January 1, 2020. The bonds pay interest annually. Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds

+1
Answers (1)
  1. 2 June, 18:11
    0
    Dr. Cr.

    Cash $514,100

    Discount on bond payable $15,900

    Bond Payable $530,000

    Explanation:

    Cash is received against the Bond issued is debited due to its debit nature and the bond payable account is credited because it is a liability and its nature is credit.

    Cash Received = (530,000 / 100) x 97 = $514,100

    Discount = (530,000/100) x (100 - 97) = $15,900
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Pharoah Company issued $530,000 of 5-year, 5% bonds at 97 on January 1, 2020. The bonds pay interest annually. Your answer is partially ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Long-term capacity plans deal with: a) investments in new facilities. b) workforce size. c) inventories. d) overtime budgets.
Answers (1)
If a producer violates an insurance law and also commits a criminal action in the process, which action is the Director most likely to take against the producer?
Answers (1)
The most recent financial statements for Hornick, Inc., are shown here (assuming no income taxes) : Income Statement Balance Sheet Sales $ 8,300 Assets $ 23,200 Debt $ 9,000 Costs 5,490 Equity 14,200 Net income $ 2,810 Total $ 23,200 Total $ 23,200
Answers (1)
Why does scarcity force economic choices?
Answers (1)
John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. a.
Answers (1)
New Questions in Business
Natalie has an easement to drive across Donald's road. Which of the following circumstances would terminate this easement? A. Sale of Natalie's propertyB. Sale of Donald's propertyC. Revocation of the easement by DonaldD.
Answers (1)
In a basic AD-AS model, if the economy is at the equilibrium on the far left of the potential real output level, then a contractionary monetary policy will
Answers (2)
What is the most common work-related hazard for a room attendant
Answers (1)
What may happen if the threaded heating element in percolator is not very tightly mounted
Answers (1)
Cole is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360.
Answers (1)
Home » Business » Pharoah Company issued $530,000 of 5-year, 5% bonds at 97 on January 1, 2020. The bonds pay interest annually. Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds
Sign Up Forgot Password?