Question

Cullumber Corporation issues $320,000 of bonds for $336,000. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Show how the bonds would be reported on the balance sheet at the date of issuance. (Enter account name only and do not provide descriptive information.) Cullumber Corporation Balance Sheet (Partial)

Answer 1

Account titles & Explanations					Debit	Credit
cash					336,000
premium on bonds payable						16,000
bonds payable						320,000
		Balance Sheet(partial)
Long term liabilities
Bonds payable				320,000
Add:
Premium on bonds payable				16,000
				336,000