On march 1, 2011, five-year bonds are sold for $508,026 that have a face value of $500,000

Question:

On march 1, 2011, five-year bonds are sold for $508,026 that have a of $500,000 and an interest rate of 10%. Interest is paid semi-annually on March 1 and September 1. Using the straight-line amortization method, prepare the borrower's journal entries on March 1, 2011; September 1, 2011; December 31, 2011; and March 1, 2012?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...