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Cullumber Electric sold €3,950,000, 12%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2020 Prepare a bond premium amortization schedule for the first 4 interest periods. Debit Credit (B) Annual Interest Periods (A) Interest to Be Paid (10%* €3,00,000) (C) Interest Expense to Be (D) Recorded (A)-(C) Premium Amortization (€120,000*10%) Bond Carrying Val Issue date 1 300000 3950 € 2 300000 3950 300000 3950 300000 3950 Prepare the journal entries for interest and the amortization of the premium in 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Show the statement of financial position presentation of the bond liability at December 31, 2021. (Enter account name only and do not provide descriptive information.) Cullumber Electric Statement of Financial Position (Partial) Current Liabilities о €

Cullumber Electric sold €3,950,000, 12%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2020 Prepare a bond premium amortization schedule for the first 4 interest periods. Debit Credit (B) Annual Interest Periods (A) Interest to Be Paid (10%* €3,00,000) (C) Interest Expense to Be (D) Recorded (A)-(C) Premium Amortization (€120,000*10%) Bond Carrying Val Issue date 1 300000 3950 € 2 300000 3950 300000 3950 300000 3950 Prepare the journal entries for interest and the amortization of the premium in 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Show the statement of financial position presentation of the bond liability at December 31, 2021. (Enter account name only and do not provide descriptive information.) Cullumber Electric Statement of Financial Position (Partial) Current Liabilities о €

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 9RE
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Cullumber Electric sold €3,950,000, 12%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2020 Prepare a bond premium amortization schedule for the first 4 interest periods. Debit Credit (B) Annual Interest Periods (A) Interest to Be Paid (10%* €3,00,000) (C) Interest Expense to Be (D) Recorded (A)-(C) Premium Amortization (€120,000*10%) Bond Carrying Val Issue date 1 300000 3950 € 2 300000 3950 300000 3950 300000 3950
Transcribed Image Text:Cullumber Electric sold €3,950,000, 12%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2020 Prepare a bond premium amortization schedule for the first 4 interest periods. Debit Credit (B) Annual Interest Periods (A) Interest to Be Paid (10%* €3,00,000) (C) Interest Expense to Be (D) Recorded (A)-(C) Premium Amortization (€120,000*10%) Bond Carrying Val Issue date 1 300000 3950 € 2 300000 3950 300000 3950 300000 3950
Prepare the journal entries for interest and the amortization of the premium in 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Show the statement of financial position presentation of the bond liability at December 31, 2021. (Enter account name only and do not provide descriptive information.) Cullumber Electric Statement of Financial Position (Partial) Current Liabilities о €
Transcribed Image Text:Prepare the journal entries for interest and the amortization of the premium in 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Show the statement of financial position presentation of the bond liability at December 31, 2021. (Enter account name only and do not provide descriptive information.) Cullumber Electric Statement of Financial Position (Partial) Current Liabilities о €
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