Briggs Industries, Inc. issued $900,000 of 8% debentures on July 1, 2013. The bonds pay interest semiannually on January 1 and July 1. The maturity date on these bonds is July 1, 2021. The bonds were sold to yield an effective-interest rate of 10%. Briggs incurred issuance costs of $15,000. Requirements
1) Calculate the selling price of the bonds.
2) Prepare the journal entry for the issuance of the bonds and the issuance costs.

Question

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The Answer of Briggs Industries, Inc. issued $900,000 of 8% debentures on July 1, 2013. The bonds pay interest semiannually on January 1 and July 1. The maturity date on these bonds is July 1, 2021. The bonds were sold to yield an effective-interest rate of 10%. Briggs incurred issuance costs of $15,000. Requirements
1) Calculate the selling price of the bonds.
2) Prepare the journal entry for the issuance of the bonds and the issuance costs.