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Cullumber Company issued $522,000, 9%, 30-year bonds on January 1, 2022, at 106. Interest is payable annually on January 1. Cullumber uses straight-line amortization for
Cullumber Company issued $522,000, 9%, 30-year bonds on January 1, 2022, at 106. Interest is payable annually on January 1. Cullumber uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events.
(a) | The issuance of the bonds. | |
(b) | The accrual of interest and the premium amortization on December 31, 2022. | |
(c) | The payment of interest on January 1, 2023. | |
(d) | The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. |
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