cullumber Corporation issued $3.06 million of 7-year, 1% bonds dated January 1, 2017, for $2,676,173. The market interest rate when the bonds were issued was 3%. Interest is payable semi-annually on January 1 and July 1. Cullumber has a December 31 year end.

Prepare an amortization schedule for the first three interest payments. (Round answers to 0 decimal places, e.g. 5,276.)

CULLUMBER CORPORATION Bond Amortization Table Effective Interest MethodSemi-annual Interest Payments 1% Bonds Issued at market rate of 3%
Date		Interest Payment		Interest Expense		Discount Amortization		Bond Amortized Cost
Jan. 1, 2017		$		$		$		$
July 1, 2017
Jan. 1, 2018
July 1, 2018

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Prepare the journal entry to record the first interest payment on July 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2017

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Prepare the adjusting journal entry on December 31, 2017, to accrue the interest expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2017

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Prepare the journal entry for the payment of interest on January 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2018