eeeal s im Aacemt e Help I Brief Ex 10-16 (Part Level Submission) Pharoah Compan

Question

eeeal s im Aacemt e Help I Brief Ex 10-16 (Part Level Submission) Pharoah Company issues $2.60 million, 10-year, 6% bonds amortize bond discount. at 98, with interest payable on December 31. The straight-line method is used to Prepare the journal entry to record interest expense and bond discount amortization on 17, assuming no previous accrual of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Attempts: 0 of 5 used SAVE FOR LATER SAUIT ANSWER 11:27 PM

Explanation / Answer

Journal Entry for Interest: Date Accounts title and explanation Debit $ Credit $ 31-Dec Interest Expense Account Dr. 161,200       Cash Account (2600,000*6%) 156000       Discount on Bonds payable (2600,000*2%*1/10) 5200

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