On January 1, 2013, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2032 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1.1

Determine the price of the bonds at January 1, 2013. (Enter your answers in whole dollars.)

1.2

Prepare the journal entry to record their issuance by Instaform. 2.1 Assume the market rate was 9%. Determine the price of the bonds at January 1, 2013. (Enter your answers in whole dollars.) 2.2 Prepare the journal entry to record their issuance by Instaform. (Enter your answers in whole dollars. If no journal entry is required for a particular event, select "No journal entry required" in the first account field.) 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt. (Enter your answers in whole dollars. If no journal entry is required for a particular event, select "No journal entry required" in the first account field.)