14 - 5 Recording Bonds at Issuance On January 1, 2011, Masterwear Industries issued $700,000 of 12% bonds. Interest of $42,000 is payable semiannually
{"Image DocumentName": "Recording Bonds at Issuance", "Image ImageDescription": "On January 1, 2011, Masterwear Industries issued  700,000 of 12% bonds. Interest of  42,000 is payable semiannually on June 30 and December 31. The bonds mature in three years [an unrealistically short maturity to shorten the illustration]. The entire bond issue was sold in a private placement to United Intergroup, Inc. at face amount. At Issuance (January 1) Masterwear (Issuer) Cash 700,000. Bonds payable 700,000. On January 1, 2011, Masterwear Industries issued  700,000 of 12% bonds. Interest of  42,000 is payable semiannually on June 30 and December 31. The bonds mature in three years [an unrealistically short maturity to shorten the illustration]. The entire bond issue was sold in a private placement to United Intergroup, Inc. at face amount. On the date of issuance Masterwear, the issuer, will debit Cash and credit Bonds Payable for  700,000. United, the investor, will debit Investment in Bonds and credit Cash for  700,000. United (Investor) Investment in bonds (face amount) 700,000. Cash 700,000.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}