Homework Answers
Answer -
Journal of Pharoah Company
| No. | Account Titles and Explanation | Debit ($) | Credit ($) |
| (a) |
Debt Investments Cash (To record the purchase of the investment) |
66399 - |
- 66399 |
| (b) |
Cash [$72000 * 7%] Debt Investments [Balancing figure] Interest Revenue [$66399 * 9%] (To record the receipt of annual interest and discount amortization) |
5040 936 - |
- - 5976 |
| (c) |
Fair Value Adjustment [$68400 - ($66399+$936)] Unrealized Holding Gain or Loss--Equity (To record the year-end fair value adjustment) |
1065 - |
- 1065 |
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need help with the other debit and credits.
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