Matchbox Company issues 6%, four-year bonds, on December 31, 2011, with a par value of $100,000 and

Question:

Matchbox Company issues 6%, four-year bonds, on December 31, 2011, with a of $100,000 and semiannual interest payments. Use the following straight-line bond amortization table and prepare journal entries to record
(a) The issuance of bonds on December 31, 2011;
(b) The first interest payment on June 30, 2012; and
(c) The second interest payment on December 31,2012.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...