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On May 1, 2022, Cullumber Corp. issued $630,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2022, and pay interest annually

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On May 1, 2022, Cullumber Corp. issued $630,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2022, and pay interest annually on May 1. Financial statements are prepared annually on December 31. (a) Your answer is correct. 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.) Debit Credit Date Account Titles and Explanation 630000 May 1, 2022 Cash 630000 Bonds Payable e Textbook and Media Your answer is partially correct. Prepare the journal entry to record payment of interest on May 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 1 2023 Interest Expense 37800 Interest Payable 1896 Cash 56700 e Textbook and Media List of Accounts Attempts: 1 of 2 used Submit Answer Save for Later (e) Prepare the adjusting entry to record the accrual of interest on December 31, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2023 e Textbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit Answer (f) Assume that on January 1, 2024, Cullumber pays the accrual bond interest and calls the bonds. The call price is 105. Record the payment of interest and redemption 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, 2024 (To record payment of interest) Jan. 1 2024 (To record redemption of the bonds) e Textbook and Media List of Accounts Attempts: 0 of 2 used Submit

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