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On January 1, Cullumber Company issued $342,000,10%,10-year bonds at face value. Interest is payable annually...

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Accounting

On January 1, Cullumber Company issued $342,000,10%,10-year bonds at face value. Interest is payable annually on January 1.
(a)
Your answer is correct.
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
Bonds Payable
b)
Prepare the journal entry to record the accrual of interest on December 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Dec. 31
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