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Cullumber Company issued $315,000, 8%, 10-year bonds on January 1, 2020, for $337,125. This price resulted in an effective-interest rate of 7% on the bonds.

Cullumber Company issued $315,000, 8%, 10-year bonds on January 1, 2020, for $337,125. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable annually on January 1. Cullumber uses the effective-interest method to amortize bond premiums or discount. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Show List of Accounts Prepares the journal entry to record the accrual of interest and the premium amortization on December 31, 2020. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Show List of Accounts Prepares the journal entry to record the payment of interest on January 1, 2021. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1

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