Question
Please, help me solve it with explanations: Cullumber Inc. issues $3,000,000, 5-year,8% bonds at102, with interest payable annually on January 1. The straight-line method is
Please, help me solve it with explanations:
Cullumber Inc. issues $3,000,000, 5-year,8% bonds at102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium.
-Prepare the journal entry to record the sale of these bonds on January 1, 2020.
Date Account Titles and Explanation Debit Credit
Jan1 ___________________________ _____ ______
___________________________ _____ ______
___________________________ _____ ______
-Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2020.
Date Account Titles and Explanation Debit Credit
Dec 31 ___________________________ _____ _____
___________________________ _____ _____
___________________________ _____ _____
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
