Kirk Company issued $700,000, 4.5%, 30-year bonds on January 1, N at 103. Interest is payable annually on January 1. Kirk uses straight-line amortization for bond premium or discount.

XIII. Kirk Company issued $700,000,4.5%,30-year bonds on January 1,N at 103 . Interest is payable annually on January 1. Kirk uses straight-line amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31,N. (c) The payment of interest on January 1,N+1. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. XIV. Apex Corporation issued $500,000,7%,20-year bonds on January 1,N for $450,909. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Apex uses the effective-interest method to amortize bond premium or discount. Instructions: Prepare the journal entries to record (round to the nearest dollar): (a) The issuance of the bonds. (b) The accrual of interest and the discount amortization on December 31,N. (c) The payment of interest on January 1, N+1. XIII. Kirk Company issued $700,000,4.5%,30-year bonds on January 1,N at 103 . Interest is payable annually on January 1. Kirk uses straight-line amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31,N. (c) The payment of interest on January 1,N+1. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. XIV. Apex Corporation issued $500,000,7%,20-year bonds on January 1,N for $450,909. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Apex uses the effective-interest method to amortize bond premium or discount. Instructions: Prepare the journal entries to record (round to the nearest dollar): (a) The issuance of the bonds. (b) The accrual of interest and the discount amortization on December 31,N. (c) The payment of interest on January 1, N+1