Issue price of the bonds and prepare a journal entry to record issue of bonds. Given information Company P issued $800,000 par value on January 1. Coupon rate is 8%. Maturity period is of 5 years. Market rate of interest is 6%. Underwriting fees paid by company is $9,000.

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Chapter 14, Problem 14.12BE

To determine

Issue price of the bonds and prepare a journal entry to record issue of bonds.

Given information

Company P issued $800,000 par value on January 1.

Coupon rate is 8%.

Maturity period is of 5 years.

Market rate of interest is 6%.

Underwriting fees paid by company is $9,000.

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