On January 1, 2018, Instaform, Inc., issued 12% bonds with a face amount of $75 million, dated January 1. The bonds mature in 2037 (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 $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.)

Required:

1-a.Determine the price of the bonds at January 1, 2018.

1-b.Prepare the journal entry to record their issuance by Instaform.

2-a.Assume the market rate was 11%. Determine the price of the bonds at January 1, 2018.

2-b.Assume the market rate was 11%. Prepare the journal entry to record their issuance by Instaform.

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.