Kemper Company plans to issue 6% bonds on January 1, 2011, with a par value of $1,000,000.

Question:

Kemper Company plans to issue 6% bonds on January 1, 2011, with a of $1,000,000. The company sells $900,000 of the bonds on January 1, 2011. The remaining $100,000 sells at par on March 1, 2011. The bonds pay interest semiannually as of June 30 and December 31. Record the entry for the March 1 cash sale of bonds.

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,...