On January 1, 2024, Cullumber Ltd. issued $575,000 of 5%, 5-year bonds. The bonds were issued...

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On January 1, 2024, Cullumber Ltd. issued $575,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%. Cullumber's year end is December 31. On January 1, 2026, immediately after making and recording the semi-annual interest payment, Cullumber redeemed the bonds. A partial bond amortization schedule is presented below. Semi-Annual Interest Period Jan 1, 2024 July 1, 2024 Jan. 1, 2025 July 1,2025 Jan 1,2026. Interest Interest Carrying Payment Expense Amortization Amount of Bonds $550,476 14.375 $16,5141 14,375 14,375 14,375 16,578) 16,645 16.713 $2,139 2,203 2,270 2,338 552,615 554,818 557,088 559,426 Prepare the journal entry to record the payment of interest on July 1, 2024. (List all debit entries before credit entries. 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.) 63°F Sunny Date July 1, 2024 Account Titles Debit Credit On January 1, 2024, Cullumber Ltd. issued $575,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%. Cullumber's year end is December 31. On January 1, 2026, immediately after making and recording the semi-annual interest payment, Cullumber redeemed the bonds. A partial bond amortization schedule is presented below. Semi-Annual Interest Period Jan 1, 2024 July 1, 2024 Jan. 1, 2025 July 1,2025 Jan 1,2026. Interest Interest Carrying Payment Expense Amortization Amount of Bonds $550,476 14.375 $16,5141 14,375 14,375 14,375 16,578) 16,645 16.713 $2,139 2,203 2,270 2,338 552,615 554,818 557,088 559,426 Prepare the journal entry to record the payment of interest on July 1, 2024. (List all debit entries before credit entries. 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.) 63°F Sunny Date July 1, 2024 Account Titles Debit Credit

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Step 11 Date 20240701 Account Interest Expense Dr 16514 Fi... View the full answer