On July 1, 2024, Pharoah Corp. issued $4.14 million of 10 -year, 5% bonds at...
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On July 1, 2024, Pharoah Corp. issued $4.14 million of 10 -year, 5% bonds at $4,478,475. This price resulted in a 4% market interest rate on the bonds. The bonds pay semi-annual interest on July 1 and January 1, and Pharoah has a December 31 year end. Assuming instead that Pharoah has an August 31 year end, prepare the adjusting entry related to these bonds on August 31 . 2024, as well as the subsequent interest payment on January 1, 2025. (List all debit entries before credit entries. Credit occount titles are outomatically inderited when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter ofor the amounts. Record journal entries in the order presented in the problem.)
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