This portion of the book will provide information about bonds payable.

Bonds represent a liability, indicating the debt owed by the issuing entity to the bondholders. Typically, this consists of two main components: the principal amount, which is the initial borrowed sum, and the interest payments, representing the cost of borrowing over time. This line item is often shown on the financial statements net of the discount on bonds payable. A discount on bonds payable occurs when bonds are issued for less than the amount they were originally valued. Understanding and recording bonds payable accurately on the balance sheet is crucial as it provides insight into the financial health of IU and its ability to meet its debt obligations.