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In: Accounting
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $65 million,...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a
face amount of $65 million, dated January 1. The bonds mature in
2040 (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 $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 11%. Determine the
price of the bonds at January 1, 2021.
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.
Solutions
Expert Solution
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ekkarill92 answered 1 year agoRelated Solutions
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $45 million,...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a
face amount of $45 million, dated January 1. The bonds mature in
2040 (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 $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....
On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $49 million,...
On January 1, 2021, Instaform, Inc., issued 10% bonds with a
face amount of $49 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....
On January 1, 2018, Instaform, Inc., issued 12% bonds with a face amount of $75 million,...
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 $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, 2018....
On January 1, 2018, Instaform, Inc., issued 12% bonds with a face amount of $55 million,...
On January 1, 2018, Instaform, Inc., issued 12% bonds with a
face amount of $55 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 $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,
2018....
On January 1, 2018, Instaform, Inc., issued 10% bonds with a face amount of $49 million,...
On January 1, 2018, Instaform, Inc., issued 10% bonds with a
face amount of $49 million, dated January 1. The bonds mature in
2037 (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,
2018....
On January 1, 2018, Instaform, Inc., issued 10% bonds with a face amount of $58 million,...
On January 1, 2018, Instaform, Inc., issued 10% bonds with a
face amount of $58 million, dated January 1. The bonds mature in
2037 (20 years). The market yield for bonds of similar risk and
maturity is 12%. Interest is paid semiannually.
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 9%. Determine the
price of the bonds at January...
On January 1, 2018, Instaform, Inc., issued 14% bonds with a face amount of $50 million,...
On January 1, 2018, Instaform, Inc., issued 14% bonds with a
face amount of $50 million, dated January 1. The bonds mature in
2037 (20 years). The market yield for bonds of similar risk and
maturity is 16%. 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,
2018....
On January 1, 2018, Instaform, Inc., issued 10% bonds with a face amount of $50 million,...
On January 1, 2018, Instaform, Inc., issued 10% bonds with a
face amount of $50 million, dated January 1. The bonds mature in
2037 (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,
2018....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face amount of $17 million....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face
amount of $17 million. The bonds were priced at $14 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Charles’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Charles report in its
balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Charles report in its
income statement for the year ended September...
On January 1, 2021, Charles, Inc., issued 12% bonds with a face amount of $17 million....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face
amount of $17 million. The bonds were priced at $14 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Charles’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Charles report in its
balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Charles report in its
income statement for the year ended September...
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