Please double check and show all your work to ensure accuracy! Thank you. List o

Question

Please double check and show all your work to ensure accuracy! Thank you.

List of Accounts

Accumulated Depreciation-Equipment
Accumulated Depreciation-Machinery
Allowance for Doubtful Accounts
Bad Debt Expense
Bond Issue Expense
Bonds Payable
Buildings
Cash
Common Stock
Debt Investments
Depreciation Expense
Discount on Bonds Payable
Discount on Notes Payable
Discount on Notes Receivable
Equipment
Equity Investments
Gain on Disposal of Machinery
Gain on Disposal of Land
Gain on Disposal of Plant Assets
Gain on Redemption of Bonds
Gain on Restructuring of Debt
Gain on Sale of Machinery
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Land
Loss on Disposal of Land
Loss on Redemption of Bonds
Machinery
Mortgage Payable
No Entry
Notes Payable
Notes Receivable
Paid-in Capital in Excess of Par - Common Stock
Paid-in Capital in Excess of Par - Preferred Stock
Premium on Bonds Payable
Sales Revenue
Unamortized Bond Issue Costs
Unearned Revenue
Unearned Sales Revenue
Unrealized Holding Gain or Loss - Income

On January 1, 2017, Cullumber Company sold 11% bonds having a maturity value of $470,000 for $487,816, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Cullumber Company allocates interest and unamortized discount or premium on the effective-interest basis. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2017

Explanation / Answer

Jan-01 Cash 487816       Bonds Payable 470000       Premium on Bonds Payable 17816 Date Cash paid Interest expense Premium amortized Carrying amount 01-01-2017 487816 12/31/17 51700 48782 2918 484898 12/31/18 51700 48490 3210 481688 12/31/19 51700 48169 3531 478157 Dec-31-17 Interest expense 48782 Premium on Bonds Payable 2918          Cash 51700 Dec-31-19 Interest expense 48169 Premium on Bonds Payable 3531          Cash 51700

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