On March 1, 2018, Master wear industries issued 5 years, sh 1000000 of 12% bonds, dated 1 Jan 2018, effective interest was 16% and interest is payable semiannually on June 30 and december 31.The entire bond issue was purchased by United group. Show the journal entries for 2018.
Dr Cash 865806
Dr. Discount 134194
Cr. Liability 1000000