A compnay issues 100000 of 5%, 10 year bonds dated january 1. The bonds pay interest semiannually on june 30 and Decemnber 31 each year. If the bonds are sold at par value, the issuer records the sale with a debit to what accounts?

Debit to cash-$100,000; credit to bond payable- $100,000

Explanation:

Since the bonds are issued by the company, it is a debit on the part of the company. This then serves up as credit to the company when it sells the bonds at june 30 and december 31 each year.

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