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Prepare the journal entry to record issuance by instaform

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Reference no: EM132936292

On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $51 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.

Problem 1: Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)

Problem 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 dollars.)

Problem 3: Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021.(Enter your answer in whole dollars.)

Problem 4: Assume the market rate was 9%. 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 dollars.)

Problem 5: 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.Record the purchase of bonds by Broadcourt.

Reference no: EM132936292

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