Cullumber Company issued $1,840,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 98, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually)
Cullumber Company issued $1,840,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 98, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Company issued $1,840,000 of bonds on January 1, 2022.
(a)
Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 98, and (3) 105. (Credit account titles
are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
(1)
(2)
(3)
(b)
Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
(c)
Prepare the journal entry to record the redemption of the bonds before maturity at 98. Assume the balance in Premium on Bonds
Payable is $9,500. (Credit account titles are automatically Indented when amount is entered. Do not indent manually)
Account Titles and Explanation
Debit
Credit
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