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Business, 21.04.2020 00:36 ahmed5774

Cullumber Corporation issued $400,000, 6%, 20-year bonds on January 1, 2019, for $357,624. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable annually on January 1. Cullumber uses the effective-interest method to amortize bond premium or discount.

Prepare the schedule using effective-interest method to amortize bond premium or discount of Cullumber Corporation.(Round answers to 0 decimal places, e. g. 125.)

Interest
Periods

Interest to
Be Paid

Interest Expense
to Be Recorded

Discount
Amortization

Unamortized
Discount

Bond
Carrying Value

Issue date

$

$

$

$

$

1

2

Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal places, e. g. 125.) -Jan. 1, 2014

Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014.(Round answers to 0 decimal places, e. g. 125.)

Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to 0 decimal places, e. g. 125.)

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