Cullumber Corporation issued $500,000 of 5 year bonds on April 1, 2020 Interest is paid semi annually on April 1 and October 1 Below is a partial amortization schedule for the first few years of the bond issue Semi Annual Interest Period Interest Payment Interest Expense Amortization Bond Amortized Cost Apr 1, 2020 $523,055 Oct 1, 2020 $10,000 $7,846 $2,154 520,901 Apr 1, 2021 10,000 7,814 2,186 518,715 Oct 1, 2021 10,000 7,781 2,219 516,496 Apr 1, 2022 10,000 7,747 2,253 514,243 Oct 1, 2022 10,000 7,714 2,286 511,957 Apr 1, 2023 10,000 7,679 2,321 509,636 Were the bonds issued at a discount or at a premium The bonds were issued at a discountpremium What is the bonds face value Face value $ What will the bonds amortized cost be at the maturity date Bond amortized cost $ What will be the total interest payment over the five year life of the bonds Total interest expense Total interest payment $ Total interest expense $ Prepare the journal entry to record the issuance of the bond (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 Apr 1, 2020 (To record issuance of bonds ) Prepare the journal entry for the first interest payment (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 Oct 1, 2020 (To record interest payment ) Prepare the adjusting journal entry on December 31, 2020, assuming this is Cullumbers year end (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 Round answers to 0 decimal places, e g 5,125 ) Date Account Titles and Explanation Debit Credit Dec 31, 2020 (To accrue interest expense ) Prepare the journal entry for the payment of interest on April 1, 2021 Assume no reversing entries have been used (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 Apr 1, 2021 (To record interest payment )

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Cullumber Corporation issued $500,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial

Cullumber Corporation issued $500,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the bond issue.

Semi-Annual Interest Period	Interest Payment	Interest Expense	Amortization	Bond Amortized Cost
Apr.1, 2020				$523,055
Oct. 1, 2020	$10,000	$7,846	$2,154	520,901
Apr. 1, 2021	10,000	7,814	2,186	518,715
Oct. 1, 2021	10,000	7,781	2,219	516,496
Apr. 1, 2022	10,000	7,747	2,253	514,243
Oct. 1, 2022	10,000	7,714	2,286	511,957
Apr. 1, 2023	10,000	7,679	2,321	509,636

Were the bonds issued at a discount or at a premium?

The bonds were issued at a discountpremium.

What is the bonds face value?

Face value

What will the bonds amortized cost be at the maturity date?

Bond amortized cost

What will be the total interest payment over the five-year life of the bonds? Total interest expense?

Total interest payment		$
Total interest expense		$

Prepare the journal entry to record the issuance of the bond. (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
Apr. 1, 2020

	(To record issuance of bonds.)

Prepare the journal entry for the first interest payment. (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
Oct. 1, 2020


	(To record interest payment.)

Prepare the adjusting journal entry on December 31, 2020, assuming this is Cullumbers year end. (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. Round answers to 0 decimal places, e.g. 5,125.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020


	(To accrue interest expense.)

Prepare the journal entry for the payment of interest on April 1, 2021. Assume no reversing entries have been used. (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.)