please solve part (c) show work. On September 1, 2024, Cullumber Corporation issued $620,000 of 10-year, 3% bonds at 96. Interest is payable semi-annually on September 1 and March 1. Cullumber's fiscal year end is February 28. (a) Is the market rate of interest higher or lower than 3%? (b) Your answer is correct. Market interest rate is higher ✓than 3%. (c) eTextbook and Media List of Accounts Your answer is correct. Record the issue of the bonds on September 1, 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles Sept. 1 Cash Bonds Payable eTextbook and Media List of Accounts Feb. 28 Date Account Titles Debit 595,200 Attempts: 1 of 5 used Debit Credit Record the accrual of interest on February 28, 2025, assuming the semi-annual amortization amount for this interest period is $1,048. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 595,200 Assistance Used Attempts: 2 of 5 used Credit
please solve part (c) show work. On September 1, 2024, Cullumber Corporation issued $620,000 of 10-year, 3% bonds at 96. Interest is payable semi-annually on September 1 and March 1. Cullumber's fiscal year end is February 28. (a) Is the market rate of interest higher or lower than 3%? (b) Your answer is correct. Market interest rate is higher ✓than 3%. (c) eTextbook and Media List of Accounts Your answer is correct. Record the issue of the bonds on September 1, 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles Sept. 1 Cash Bonds Payable eTextbook and Media List of Accounts Feb. 28 Date Account Titles Debit 595,200 Attempts: 1 of 5 used Debit Credit Record the accrual of interest on February 28, 2025, assuming the semi-annual amortization amount for this interest period is $1,048. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 595,200 Assistance Used Attempts: 2 of 5 used Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Am. 388.
Transcribed Image Text:please solve part (c) show work.
On September 1, 2024, Cullumber Corporation issued $620,000 of 10-year, 3% bonds at 96. Interest is payable semi-annually on
September 1 and March 1. Cullumber's fiscal year end is February 28.
(a)
Is the market rate of interest higher or lower than 3%?
Your answer is correct.
(b)
Market interest rate is higher ✓than 3%.
(c)
eTextbook and Media
List of Accounts
Your answer is correct.
Record the issue of the bonds on September 1, 2024. (List all debit entries before credit entries. Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts.)
Date Account Titles
Sept. 1
Cash
eTextbook and Media
Bonds Payable
List of Accounts
Date
Feb. 28
Debit
Account Titles
595.200
Attempts: 1 of 5 used
Debit
Credit
Record the accrual of interest on February 28, 2025, assuming the semi-annual amortization amount for this interest period is
$1,048. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
595,200
Assistance Used
Attempts: 2 of 5 used
Credit
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