Question

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. 

Answer 1

--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