Accounting 2 Question

2. Kiki Inc., which closes its books on December 31, is authorized to issue $600,000 of 8%, 10-year bonds dated January 1,2016, with interest payments on January REQUIRED: Present general journal entries to record the events listed below, assuming the bonds were sold at face on January 1, 2016 1. The bond issue. 2. Accrual of thelbond interest at December 31. 3. Payment of the first semiannual period's interest 4. Retirement of the bonds at maturity 3. On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At December 31, Tamlee Co. declared and paid a cash dividend of S50,000 and reported a net income of $160,000. REQUIRED Prepare the journal entries for the Criquet Co. under each of the independent circumstances: a. Criquet Co. acquires a 10% interest in the Tamlee Co. b. Criquet Co. acquires a 25% interest in the Tamlee Co. Page 3 of 3 6