Cullumber Company sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. (a)
Cullumber Company sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. (a)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cullumber Company sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101.
(a)
Correct answer iconYour answer is correct.
Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Date
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Account Titles and Explanation
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Debit
|
Credit
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|---|---|---|---|
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Jan. 1, 2022
|
enter an account title for the journal entry on January 1, 2022
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on January 1, 2022
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title for the journal entry on January 1, 2022
|
enter a debit amount
|
enter a credit amount
|
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List of Accounts
Attempts: 1 of 5 used
(b)
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Prepare a bond premium amortization schedule for the first four interest periods.
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Annual Interest Periods
|
Interest to Be Paid
|
Interest Expense
to Be Recorded |
Premium Amortization
|
Unamortized Premium
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Bond Carrying Value
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|||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Issue date
|
$enter Unamortized Premium in dollars
|
$enter Bond Carrying Value in dollars
|
||||||||
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1
|
$enter Interest to Be Paid in dollars
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$enter Interest Expense in dollars
|
$enter Premium Amortization in dollars
|
enter Unamortized Premium in dollars
|
enter Bond Carrying Value in dollars
|
|||||
|
2
|
enter Interest to Be Paid in dollars
|
enter Interest Expense in dollars
|
enter Premium Amortization in dollars
|
enter Unamortized Premium in dollars
|
enter Bond Carrying Value in dollars
|
|||||
|
3
|
enter Interest to Be Paid in dollars
|
enter Interest Expense in dollars
|
enter Premium Amortization in dollars
|
enter Unamortized Premium in dollars
|
enter Bond Carrying Value in dollars
|
|||||
|
4
|
enter Interest to Be Paid in dollars
|
enter Interest Expense in dollars
|
enter Premium Amortization in dollars
|
enter Unamortized Premium in dollars
|
enter Bond Carrying Value in dollars
|
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