Gordon Corporation issued $100,000 par value, 6%, 5-year bonds on January 1, 2019. The bonds mature on December 31, 2023 and pay semi-annual interest on June 30 and December 31. The market rate on the date of issue is 8%. Prepare the journal entries for the issuance of the bond and payment of the first interest payment, assuming that Gordon uses the straight-line method of discount amortization.

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The Answer of Gordon Corporation issued $100,000 par value, 6%, 5-year bonds on January 1, 2019. The bonds mature on December 31, 2023 and pay semi-annual interest on June 30 and December 31. The market rate on the date of issue is 8%. Prepare the journal entries for the issuance of the bond and payment of the first interest payment, assuming that Gordon uses the straight-line method of discount amortization.

Gordon Corporation Issued $100,000 Par Value, 6%, 5-Year Bonds on January