On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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 8RE
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![On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds were dated October 1,
2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.
(a)
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Oct. 1,
2021](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b0ab463-4d4c-475b-97de-464c7d60d430%2F2afebcc8-be4e-4111-bc8d-a40dcdf9b821%2Feopnvyi_processed.png&w=3840&q=75)
Transcribed Image Text:On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds were dated October 1,
2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.
(a)
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Oct. 1,
2021
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