Problem 15-06A a-c (Part Level Submission) Cullumber Company sold $2,800,000, 5%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Cullumber Company uses the straight-line method to amortize bond premium or discount.

Your answer is partially correct. Try again Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds sold at 103. (Credit account titles are automatically indented when amount is entered. Do no indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debt Credit Jan 1, 2020 Cash 2,884,000 Bond Payable 2,800,000 CL Premium on Bonds Payable 112,000 Dec 31, 2020 brest Expense 184,800 Premium on Bonda Payable 11,200 Interest Payable 140,000