On January 1, 2016, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated

Fantastic news! We've Found the answer you've been seeking!

Question:

On January 1, 2016, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2035 (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 $1andPVAD of $1)

1. Determine the price of the bonds at January 1, 2016

2. Prepare the journal entry to record their issuance by Instaform

3. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2016.

4. Prepare the journal entry to record their issuance by Instaform.

Posted Date: Jun 21, 2024 11:09 PM

See More Questions

Explain why it is necessary for organisations to monitor and review their internal control system. (LO5, LO6)
Avoiding Huge Credit Card Debt for College Students College students represent a new push for credit card companies. An amazing 56 percent of students carried a credit card in the most recent study...
Luthan Company uses a plantwide predetermined overhead rate of $22.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $274,800 of total manufacturing...
All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $25,000 cash. The company...
How do economic factors such as inflation rates and GDP growth affect consumer spending behavior in our industry? What regulatory changes or government policies could impact our market, and how...
Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $26 a unit, production costs at 37% of sales...
According to the text, numerous factors can impact productivity of an organization. Generally, those factors include methods, capital, quality, technology and management. Based on your previous or...
How do environmental factors, such as temporal constraints, resource scarcity, and information asymmetry, shape the decision-making calculus of individuals and organizations, exerting profound...
The following data below gives information for Hammer's Custom Fabrics. Cost of goods sold last year was 1004770 and the average aggregate inventory on raw materials is 28,000, work in process (WIP)...
A company sells from four store locations the coordinates and demands of those store are: Coordinate (7,9) demand =6000 Coordinate (40,20) demand =8000 Coordinate (80,30) demand =9000 Coordinate...

On January 1, 2016, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated

Question:

Expert Answer:

Students also viewed these accounting questions