Exercise 14-10 (Part Level Submission) On January 1, 2020, Culver Company sold 12% bonds having a maturity value of $900,000 for $968,233, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Culver Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2020 (b) Prepare a schedule of interest expense and bond amortization for 2020-2022. (Round answer to o decimal places, e.g. 38,548.) Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Interest Premium Expense Amortized $ Cash Paid Date Carrying Amount of Bonds 1/1/20 12/31/20 12/31/21 12/31/22 Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER (c) Prepare the journal entry to record the interest payment and the amortization for 2020. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation December 31, 2020 Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Exercise 14-10 (Part Level Submission) On January 1, 2020, Culver Company sold 12% bonds having a maturity value of $900,000 for $968,233, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Culver Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2020 (b) Prepare a schedule of interest expense and bond amortization for 2020-2022. (Round answer to o decimal places, e.g. 38,548.) Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Interest Premium Expense Amortized $ Cash Paid Date Carrying Amount of Bonds 1/1/20 12/31/20 12/31/21 12/31/22 Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER (c) Prepare the journal entry to record the interest payment and the amortization for 2020. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation December 31, 2020 Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 1 used
