Kiwi Corporation issued at par $350,000, 9% bonds on January 1, 2020. Interest is paid annually on

Question:

Kiwi Corporation issued at par $350,000, 9% bonds on January 1, 2020. Interest is paid annually on December 31. The principal and the final interest payment are due on December 31, 2021.
Required:
1. Prepare the entry to recognize the issuance of the bonds.
2. Prepare the journal entry for December 31, 2020.
3. Prepare the journal entry to record repayment of the principal on December 31, 2021.
4. How would the interest expense for 2020 change if the bonds had been issued at a premium?

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