On January 1, 2021, Cullumber Ltd. issued bonds with a maturity value of $7,800,000 when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The companys year end is December 31. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1

Issue Price$

CULLUMBER LTD. Bond Premium Amortization Table Effective Interest MethodSemi-Annual Interest Payments 5% Bonds Issued at market rate of 4%
Date		Interest Payment		Interest Expense		Premium Amortization		Bond Amortized Cost
Jan. 1, 2021		$		$		$		$
July 1, 2021
Jan. 1, 2022
July 1, 2022
Jan. 1, 2023

Prepare all of the required journal entries related to the bonds that Cullumber Ltd. will record during 2021, including any adjusting journal entries at December 31, 2021.

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
	(To record issuance of bonds.)
July 1
	(To record interest payment.)
Dec. 31

CULLUMBER LTD. Balance Sheet (Partial) For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021
Non-Current LiabilitiesCurrent LiabilitiesProperty, Plant and EquipmentShareholders' EquityCurrent Assets
		$
Current AssetsNon-Current LiabilitiesProperty, Plant and EquipmentShareholders' EquityCurrent Liabilities

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
	(To record interest payment.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
	(To record redemption of bonds.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

(To record maturity of bond.) What will be the total interest payment over the 10-year life of the bonds? What will be the total interest expense over the 10-year life of the bonds? (Round answers to 0 decimal places, e.g. 5,275.)

Interest Payment		$
Interest Expense		$