37 Cullumber Electric sold $7,680,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. a Prepare the journal entry to record the issuance of the bonds on January 1, 2022. b At December 31, 2022, $15,360 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. c On January 1, 2024, when the carrying value of the bonds was $7,557,120, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid.

37 Cullumber Electric sold $7,680,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. a Prepare the journal entry to record the issuance of the bonds on January 1, 2022. b At December 31, 2022, $15,360 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. c On January 1, 2024, when the carrying value of the bonds was $7,557,120, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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