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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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