Barnett Industries, Inc. issued $600,000 of 8% bonds on January 1, 2013. The bonds pay interest semiannually on July 1 and January 1. The maturity date on these bonds is December 31, 2022. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 9%. Barnett incurred legal and investment banking fees of $22,000 in issuing the bonds and amortizes these costs annually on a straight-line basis.

Required:

1. Calculate the selling price of the bonds.

2. Prepare journal entry for the issuance of the bonds and bond issue costs

3. Assume that Barnett uses IFRS. Prepare the journal entry for the issuance of the bonds.