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somebody can help me with this?? Problem 10-10A (Part Level Submission) On January 1, 2017, Culver Corporation issued $1,780,000 face value, 8%, 10-year bonds at
somebody can help me with this??
Problem 10-10A (Part Level Submission) On January 1, 2017, Culver Corporation issued $1,780,000 face value, 8%, 10-year bonds at $1,561,253. This price resulted in an effective-interest rate of 10% on the bonds. Culver uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 1561253 Discount on Bonds Payable 218747 Bonds Payable 1780000 Click if you would like to Show Work for this question: Open Show Work Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 125.) CULVER CORP Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Interest Expense Annual Interest Periods Bond Value 1,561,253 1,574,978 1,590,076 1,606,684 Interest to Be Paid Carrying to Be Recorded Discount mortization Unamortized Discount Issue date 218,747 142,400 142,400 142,400 156,125 157,498 159,008 13,725 15,098 16,608 205,022 189,924 173,316 2 Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2017. (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 156125 Discount on Bonds Payable 13725 Interest Payable 142400 Click if you would like to Show Work for this question: Open Show Work (d) Prepare the journal entry to record the payment of interest on January 1, 2018. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1Step by Step Solution
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