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On January 1,2024 , Instaform, Incorporated, issued 14% bonds with a face amount of $50 million, dated January 1. - The bonds mature in 2043
On January 1,2024 , Instaform, Incorporated, issued 14% bonds with a face amount of $50 million, dated January 1. - The bonds mature in 2043 (20 years). - The market yield for bonds of similar risk and maturity is 16%. - Interest is paid semiannually. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 12\%. Determine the price of the bonds at January 1, 2024. 2-b. Assume the market rate was 12%. 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. Note: Use tables, Excel, or a financial calculator. (FV of $1,PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) Complete this question by entering your answers in the tabs below. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. Journal entry worksheet Record the purchase of bonds by Broadcourt. Note: Enter debits before credits
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