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Cullumber Company issued $505,000, 15-year, 4% bonds at 96. Prepare the journal entry to record the sale of these bonds on January 1, 2022. Date Account Titles and Explanation Debit Credit Jan. 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cullumber Company issued $505,000, 15-year, 4% bonds at 96.

Prepare the journal entry to record the sale of these bonds on January 1, 2022.

Date	Account Titles and Explanation	Debit	Credit
Jan. 1

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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