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Question - Cullumber Inc. issues $3,000,000, 5-year, 8% bonds at 102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium.
Required -
1. Prepare the journal entry to record the sale of these bonds on January 1, 2020.
2. Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2020.
Critical Evaluation in the Humanities
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