On August 1, 2025, Cullumber Company acquired $390000 face value 10% bonds of Ivanhoe Corporation at 104 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Cullumber make to record the purchase of the bonds on August 1, 2025? Debt Investments Cash Debt Investments Premium on Bonds Cash Debt Investments Interest Revenue Cash 415350 390000 25350 415350 415350 415350 9750 405600
On August 1, 2025, Cullumber Company acquired $390000 face value 10% bonds of Ivanhoe Corporation at 104 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Cullumber make to record the purchase of the bonds on August 1, 2025? Debt Investments Cash Debt Investments Premium on Bonds Cash Debt Investments Interest Revenue Cash 415350 390000 25350 415350 415350 415350 9750 405600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: acounting

Transcribed Image Text:On August 1, 2025, Cullumber Company acquired $390000 face value 10% bonds of Ivanhoe Corporation at 104 plus accrued
interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest payable each October 31 and April 30. The
bonds will be held to maturity. What entry should Cullumber make to record the purchase of the bonds on August 1, 2025?
Debt Investments
Cash
Debt Investments
Premium on Bonds
Cash
Debt Investments
Interest Revenue
Cash
415350
390000
25350
415350
415350
415350
9750
405600
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