Kiwi Corporation issued at par $200,000, 8 percent bonds on December 31, 2008. Interest is paid annually

Question:

Kiwi Corporation issued at par $200,000, 8 percent bonds on December 31, 2008. Interest is paid annually on December 31. The principal and the final interest payment are due on December 31, 2010.

Required:

1. Prepare the entry to recognize the issuance of the bonds.

2. Prepare the journal entry for December 31, 2009.

3. Prepare the journal entry for December 31, 2010.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...