Power Company issued a $1,000,000, 5%, 5-year bond payable at face value on January 1, 2018. Interest

Question:

Power Company issued a $1,000,000, 5%, 5-year bond payable at on January 1, 2018. Interest is paid semiannually on January 1 and July 1.
Requirements
1. Journalize the issuance of the bond payable on January 1, 2018.
2. Journalize the payment of semiannual interest on July 1, 2018.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...