Exercise 15-16 a-c (Part Level Submission) Cullumber Company issued $840,000, 9%, 10-year bonds on December 31, 2019, for $770,000. Interest is payable annually on December 31. Cullumber Company uses the straight-line method to amortize bond premium or discount. (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 Dec. 31, 2019 Click if you would like to Show Work for this question: Open Show Work
Exercise 15-16 a-c (Part Level Submission) Cullumber Company issued $840,000, 9%, 10-year bonds on December 31, 2019, for $770,000. Interest is payable annually on December 31. Cullumber Company uses the straight-line method to amortize bond premium or discount. (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 Dec. 31, 2019 Click if you would like to Show Work for this question: Open Show Work
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 14.5APR
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Sheridan Corporation issued $460,000, 9%, 20-year bonds on January 1, 2020, for $420,837. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable annually on January 1. Sheridan uses the effective-interest method to amortize bond premium or discount.
How would I calculate the above fo rthe entries?
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