Question: Please, help me solve it with explanations: Cullumber Inc. issues $3,000,000, 5-year,8% bonds at102, with interest payable annually on January 1. The straight-line method is

Please, help me solve it with explanations:

Cullumber Inc. issues $3,000,000, 5-year,8% bonds at102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium.

-Prepare the journal entry to record the sale of these bonds on January 1, 2020.

Date Account Titles and Explanation Debit Credit

Jan1 ___________________________ _____ ______

___________________________ _____ ______

-Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2020.

Date Account Titles and Explanation Debit Credit

Dec 31 ___________________________ _____ _____

___________________________ _____ _____

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