The Cullumber Company issued $240,000 of 13% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds were issued at 96. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Cullumber Company records straight-line amortization semiannually. (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.) Date Account Titles and Explanation Debit Credit
The Cullumber Company issued $240,000 of 13% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds were issued at 96. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Cullumber Company records straight-line amortization semiannually. (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.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishnu
Transcribed Image Text:The Cullumber Company issued $240,000 of 13% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable
each July 1 and January 1. The bonds were issued at 96.
Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Cullumber Company records straight-line
amortization semiannually. (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.)
Date
Jan. 1, 2025
July 1, 2025
Dec. 31, 2025 v
Account Titles and Explanation
Cash
Discount on Bonds Payable
Bonds Payable
Interest Expense
Discount on Bonds Payable
Cash
Interest Expense
Discount on Bonds Payable
Cash
Debit
100
Credit
240000
15600
15600
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