On January $1,2023,$ Cullumber Corp. sold at $106,100$ of its $$1,000$ face value, five$-$year, $7\%$ non$-$convertible, retractable bonds. The retraction feature allows the holder to redeem the bonds at an amount equal to three times net income, to a maximum of $$1,157$ per bond. Cullumber has net income of $$265,$$$376,$ and $$452$ for the fiscal years ended December $31,2023,2024,$ and $2025,$ respectively. Cullumber prepares its financial statements in accordance with ASPE.

$($a$)$

Correct Answer

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Prepare the entry to record the issuance of the bonds. $($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. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

$106000$

$106000$

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