Bonds with Annual Interest Payments

Kiwi Corporation issued at par $$350,000,7\%$ bonds on January $1,2024.$ Interest is paid annually on December $31.$ The principal and the final interest payment are due on December $31,2025.$

Required:

Prepare the entry to recognize the issuance of the bonds. If an amount box does not require an entry, leave it blank.

$2024$ Jan. $1$

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Record issuance of bonds at par.

$2.$ Prepare the journal entry for December $31,2024.$ If an amount box does not require an entry, leave it blank.

$2024$ Dec. $31$

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Record interest expense

$3.$ Prepare the journal entry to record repayment of the principal on December $31,2025.$ If an amount box does not require an entry, leave it blank.

$2025$ Dec. $31$

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Record repayment of bond principal