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Please provide the answers Culver Company sells 9% bonds having a maturity value of $4,300,000 for $4,843,394. The bonds are dated January 1, 2025, and
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Culver Company sells 9% bonds having a maturity value of $4,300,000 for $4,843,394. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Set up a schedule of interest expense and premium amortization under the straight-line method. (Round answers to O decimal place, e.g. 38,548.) Schedule of Bond Premium Amortization Straight-Line Method Interest Interest Premium Carrying Year Payable Expense Amortized Amount of Bonds Jan. 1, $ $ 4843394 2025 Dec. 31, 387000 2025 Dec. 31, 387000 2026 Dec. 31, 387000 2027 Dec. 31, 387000 2028 Dec. 31, 387000 4,300,000Cullumber Inc. issued $1,040,000 of 10%, 10-year bonds on June 30, 2025, for $920,708. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Cullumber uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $On January 1, 2025, Culver Company sold 12% bonds having a maturity value of $1,030,000 for $1,194,499.65, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2025, and mature January 1, 2030, 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 2 decimal places, e.g. 38,548.25. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit January 1, 2025On January 1, 2020, Splish Corporation issued $5,180,000 of 10% bonds at 103 due December 31, 2029. Splish paid $77,000 in bond issue costs when the bonds were issue to the market. These will be amortized over the life of the bond. The premium on the bonds is also being amortized on a straightline basis over the 10 years. (Straightline is not materially different in effect from the preferable "inte rest method\".] The bonds are callable at 105 [i.e._. at 105% of face amount], and on January 2, 2025, Splish called onehalf ofthe bonds and retired them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Splish as a result of retiring the $2,590,000 of bonds in 2025. Loss on redemption 5 Prepare the journal entry to record the retirement. [lfno entry is required. select "No Entry" for the account titles and enterO for the amounts. Credit acmunt titles are automatically indented when the ammmt is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit January 2, 2025Step by Step Solution
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