FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hi there,

Can you help with attached questions, thanks kindly.

On January 1, 2021, Instaform, Inc., Issued 10% bonds with a face amount of $54 million, dated January 1. The bonds mature in 2040
(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 $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1-a. Determine the price of the bonds at January 1, 2021.
1-b. Prepare the journal entry to record their Issuance by Instaform.
2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021.
2-b. Assume the market rate was 9%. 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.
Complete this question by entering your answers in the tabs below.
Reg 1B
Reg 1A
Req 3
Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)
Price of the bonds
Reg 2A
Req 2B
< Req 1A
Req 1B >
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Transcribed Image Text:On January 1, 2021, Instaform, Inc., Issued 10% bonds with a face amount of $54 million, dated January 1. The bonds mature in 2040 (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 $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Determine the price of the bonds at January 1, 2021. 1-b. Prepare the journal entry to record their Issuance by Instaform. 2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021. 2-b. Assume the market rate was 9%. 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. Complete this question by entering your answers in the tabs below. Reg 1B Reg 1A Req 3 Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.) Price of the bonds Reg 2A Req 2B < Req 1A Req 1B >
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