On May 1 of the current year, a company paid $200,000 cash to purchase 6%, 10-year bonds

Question:

On May 1 of the current year, a company paid $200,000 cash to purchase 6%, 10-year bonds with a of $200,000; interest is paid semiannually each May 1 and November 1. The company intends to hold these bonds until they mature.
(a) Prepare the journal entry to record the bond purchase.
(b) Prepare the journal entry to record the receipt of the first semiannual interest payment on November 1.
(c) Prepare the journal entry for the accrual of interest for the year-end December 31.
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,...