Question: BE14-11. Bond Issue, Bond Issue Costs. [Learning Objectives 3, 5] On January 1, Plum Company issued $800,000 par value, 8%, 5-year bonds (i.e., there

BE14-11. Bond Issue, Bond Issue Costs. [Learning Objectives 3, 5] On January 1, Plum Company issued $800,000 par value, 8%, 5-year bonds (i.e., there were 800 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Plum paid $9,000 in underwriting fees. Determine the issue price of the bonds with a 12% market rate of interest and prepare the journal entry to record the bond issue.

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