Exercise 10-27 Culver Corporation issued $480,000, 7%, 20-year bonds on January 1, 2022, for $432,874. 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 journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 10-27 Culver Corporation issued $480,000, 7%, 20-year bonds on January 1, 2022, for $432,874. 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. Your answer is partially correct. Try again. Prepare the schedule using effective interest method to amortize bond premium or discount of Culver. (Round answers to o decimal places, e.g. 5,275.) Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date x X X x x x 2 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 cash x Discount on Bonds Payable x bonds payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit x Dec. 31, 2022 Interest Expense x Discount on Bonds Payable ! x interest payable