Answered: Cullumber Company issued $505,000,…

Cullumber Company issued $505,000, 15-year, 4% bonds at 96. Prepare the journal entry to record the sale of these bonds on January 1, 2022. Date Account Titles and Explanation Debit Credit Jan. 1

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...

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Question

Cullumber Company issued $505,000, 15-year, 4% bonds at 96.

Prepare the journal entry to record the sale of these bonds on January 1, 2022.

Date	Account Titles and Explanation	Debit	Credit
Jan. 1

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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