The Kurten Corporation is authorized to issue $500,000 of 8% bonds. Interest on the bonds is payable

Question:

The Kurten Corporation is authorized to issue $500,000 of 8% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, 2007 and are due December 31, 2012.

Required

Prepare the journal entries to record the following:

April 1, 2007 Sold the bonds at par plus accrued interest

June 30, 2007 First interest payment

Dec. 31, 2007 Second interest payment

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...