Question
In: Accounting
Cullumber Company sold $7,100,000,7%, 15-year bonds on January 1, 2022. The bonds were dated January 1,...
Cullumber Company sold $7,100,000,7%, 15-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on December 31. The bonds were sold at 97.
Prepare the journal entry to record the issuance of the bonds on January 1, 2022.
At December 31, 2022, $8,000 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2022.
Solutions
Expert Solution
--Remaining INCORRECT part
| Balance Sheet (Partial) | ||
| Dec 31, 2022 | ||
| Long Term Liabilities | ||
| Bonds Payable | $7,100,000 | |
| Less: Discount on Bonds Payable ($213000 - 8000 amortised) | $205,000 | $6,895,000 |
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