Pinkerton Corporation issued $4,000,000 of 6%, 20-year bonds payable at par value on January 1, 2016. Interest is payable each June 30 and December 31. Required: a The bonds were sold at their face value b The bonds were sold for $3,208,336 c The bonds were sold for $5,049,260 Prepare the calculations and journal entries to record the issuance of the bond and the first interest payment under the following three situations:

Pinkerton Corporation issued $4,000,000 of 6%, 20-year bonds payable at par value on January 1, 2016. Interest is payable each June 30 and December 31 Required: Prepare the calculations and journal entries to record the issuance of the bond and the first interest payment under the following three situations: a The bonds were sold at their face value b The bonds were sold for $3,208,336 c The bonds were sold for $5,049,260