Question
BriggsIndustries,Inc.issued$750,000of7%debenturesonJuly1,2013.Thebondspayinterestsemiannuallyon January1andJuly1.ThematuritydateonthesebondsisJuly1,2021.Thebondsweresoldtoyieldaneffective interestrateof8%.Briggsincurredissuancecostsof$15,000. Requirements : 1)Calculatethesellingpriceofthebonds. 2)Preparethejournalentryfortheissuanceofthebondsandtheissuancecosts. **PLEASE SHOW ALL WORK & CALCULATIONS**
BriggsIndustries,Inc.issued$750,000of7%debenturesonJuly1,2013.Thebondspayinterestsemiannuallyon January1andJuly1.ThematuritydateonthesebondsisJuly1,2021.Thebondsweresoldtoyieldaneffective interestrateof8%.Briggsincurredissuancecostsof$15,000.
Requirements:
1)Calculatethesellingpriceofthebonds.
2)Preparethejournalentryfortheissuanceofthebondsandtheissuancecosts.
**PLEASE SHOW ALL WORK & CALCULATIONS**
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Advanced Financial Accounting
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
7th edition
