Veltman Corp. issued $750,000 of 4-percent, 10-year bonds at par value on May 1, 2014, four months

Question:

Veltman Corp. issued $750,000 of 4-percent, 10-year bonds at on May 1, 2014, four months after the bond's original issue date of January 1, 2014. Journalize the following transactions. Include an explanation for each entry.
a. Issuance of the bonds payable on May 1, 2014.
b. Payment of the first semiannual interest amount on July 1, 2014.
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,...