On January 1, 2020, Desmond & Co. issued 5,000 bonds with a $1,000 par value at 100.

Question:

On January 1, 2020, Desmond & Co. issued 5,000 bonds with a $1,000 at 100. The bonds have an 8% stated rate, pay interest on June 30 and December 31, and mature on December 31, 2020.
Required:
Prepare the journal entries to record the interest payment on June 30, 2020.
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,...