Presented below are two independent situations. On January 1, 2025, Cullumber Company issued $396,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1. July 1, October 1, and January 1. 1. 2 On June 1, 2025, Riverbed Company issued $348,000 of 12 %, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.
Presented below are two independent situations. On January 1, 2025, Cullumber Company issued $396,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1. July 1, October 1, and January 1. 1. 2 On June 1, 2025, Riverbed Company issued $348,000 of 12 %, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
Related questions
Question
![Presented below are two independent situations.
1.
2.
a.
On January 1, 2025, Cullumber Company issued $396,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April
1, July 1, October 1, and January 1.
For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select "No Entry" for
the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. List all debit entries before credit entries.)
b.
On June 1, 2025, Riverbed Company issued $348,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest.
Interest is payable semiannually on July 1 and January 1
The issuance of the bonds.
The payment of interest on July 1.
The accrual of interest on December 31.
Date
1.
Account Titles and Explanation
Cullumber Company:
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffaa93dee-b79b-447e-94b4-d19e3a94a632%2F83dee96e-f578-4f6c-b93f-d033869a75e9%2F1eiy0cs_processed.png&w=3840&q=75)
Transcribed Image Text:Presented below are two independent situations.
1.
2.
a.
On January 1, 2025, Cullumber Company issued $396,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April
1, July 1, October 1, and January 1.
For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select "No Entry" for
the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. List all debit entries before credit entries.)
b.
On June 1, 2025, Riverbed Company issued $348,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest.
Interest is payable semiannually on July 1 and January 1
The issuance of the bonds.
The payment of interest on July 1.
The accrual of interest on December 31.
Date
1.
Account Titles and Explanation
Cullumber Company:
Debit
Credit
![2.
Riverbed Company:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffaa93dee-b79b-447e-94b4-d19e3a94a632%2F83dee96e-f578-4f6c-b93f-d033869a75e9%2Fqtlhlwi_processed.png&w=3840&q=75)
Transcribed Image Text:2.
Riverbed Company:
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning