On January 1, 2018, Masterweave Industries issued $700, 000 of 12% bonds, dated January 1. Interest is payable semi-annually on July 1 and January The first payment occurs on July 1, 2018. The bonds mature in three years. The market yield for bonds of similar risk and maturity is 14%. Prepare the journal entries to: (a) Record the bond issuance (b) Account for the bond over the entire three years including repayment on maturity (January 1, 2021)