On January 1, 2016, Instaform, Inc., issued 12% bonds with a face amount of $70 million, dated January 1. The bonds mature in 2035 (20 years). The market yield for bonds of similar risk and maturity is 14%. 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, 2016. (Enter your answer in whole dollar.)

1.2 Prepare the journal entry to record their issuance by Instaform. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.)

2.1 Assume the market rate was 11%. Determine the price of the bonds at January 1, 2016. (Enter your answer in whole dollar.)

2.2 Prepare the journal entry to record their issuance by Instaform. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.)

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.)