On January 1, 2024, Cullumber Ltd., a public company, purchased $672,000 of 5-year, 6% bonds at...

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On January 1, 2024, Cullumber Ltd., a public company, purchased $672,000 of 5-year, 6% bonds at par from Bramble Corporation. Interest is received semi-annually on July 1 and January 1. Cullumber purchased the bonds to earn interest. At December 31, 2024, the bonds were trading at 103. (a) Prepare the journal entry to record the purchase of the bonds on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles Jan. 1 Debit Credit On January 1, 2024, Cullumber Ltd., a public company, purchased $672,000 of 5-year, 6% bonds at par from Bramble Corporation. Interest is received semi-annually on July 1 and January 1. Cullumber purchased the bonds to earn interest. At December 31, 2024, the bonds were trading at 103. (a) Prepare the journal entry to record the purchase of the bonds on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles Jan. 1 Debit Credit

Answer rating: 100% (QA)

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