A bond indenture is a contract between the corporation Issuing the bonds and the underwriters soiling the bonds. the amount due at the maturity date of the bonds a contract between the corporation issuing the bonds and the bondholders the amount for which the corporation can buy back the bonds prior to the maturity date The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is to debit Bends Payable, credit Cash debit Cash and Discount on Bonds Payable, credit Bonds Payable debit Cash, credit Premium on Bonds Payable and Bonds Payable C debit Cash, credit Bonds Payable