mpany 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 b
mpany 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 b
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.
(c)
Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (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.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
Dec. 31, 2022
|
enter an account title for the
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on december 31, 2022
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title for the journal entry on december 31, 2022
|
enter a debit amount
|
enter a credit amount
|
|
|
choose a transaction date
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
|
Dec. 31, 2023
|
enter an account title for the journal entry on december 31, 2023
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on december 31, 2023
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title for the journal entry on december 31, 2023
|
enter a debit amount
|
enter a credit amount
|
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