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Prepare adjusting journal entry to record interest expense

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Question: Cullumber Company issues $6,000,000, 10-year, 10% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount.

The journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

Cash 5,760,000

Discount on bonds payable 240,000

Bonds Payable 6,000,000

Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM132752946

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