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Cullumber Inc. issues $3,500,000, 5-year, 8% bonds at 103, with interest payable annually on January 1. The straight-line met

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Answer #1
Date Account titles & Explanations Debit Credit
1-Jan Cash 3605000
premium on bonds payable 105000
Bonds payable 3,500,000
Date Account titles & Explanations Debit Credit
31-Dec interest expense 259000
premium on bonds payable 21000
cash 280000
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