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Exercise 10-22 Culver Corporation issued $440,000, 696, 20-year bonds on January 1, 2017, for $353,600. This price resulted in an effective-interest rate of 8% on
Exercise 10-22 Culver Corporation issued $440,000, 696, 20-year bonds on January 1, 2017, for $353,600. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Culver uses the effective-interest method to amortize bond premium or discount. Prepare the schedule using effective-interest method to amortize bond premium or discount of Culver Corporation. (Round answers to 0 decimal places, e.g. 5,250.) Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017
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