Problem 14-1 (Algo) Determining the price of bonds; discount and premium; issuer and investor [LO14-2] On January 1, 2024, Instaform, Incorporated, issued 12% bonds with a face amount of $75 million, dated January 1. - The bonds mature in 2043 (20 years). - The market yield for bonds of similar risk and maturity is 14%. - 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 11%. Determine the price of the bonds at January 1, 2024. 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. 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. Determine the price of the bonds at January 1,2024. Note: Enter your answer in whole dollars. Complete this question by entering your answers in the tabs below. Prepare the joumal entry to record their issuance by Instaform. 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 Novel enter debits betore gredits. Problem 14-1 (Algo) Determining the price of bonds; discount and premium; issuer and investor [LO14-2] On January 1,2024 , Instaform, Incorporated, issued 12% bonds with a face amount of $75 million, dated January 1 . - The bonds mature in 2043 (20 years). - The market yleld for bonds of similar risk and maturity is 14%. - 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 11%. Determine the price of the bonds at January 1, 2024. 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. Note: Use tables, Excel, or a financial calculator. (EV of \$1. PV of \$1, EVA of \$1, PVA of \$1, EVAD of \$1 and PVAD of \$1) Complete this question by entering your answers in the tabs below. Assume the market rate was 11%. Determine the price of the bonds at January 1,2024. Note: Enter your answer in whole dollars. Assume the market rate was 11%. Prepare the joumal entry to record their issuance by Instaform. 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 diliars. Journal entry worksheet Noter Enter Bebits bePore credits. 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 the journa entry whole dollars. Journal entry worksheet Record the purchase of bonds by Broadcourt. Note: Enter debits before credits
