Question
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
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face amount of $49 million, dated January 1. The bonds mature in
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appropriate factor(s) from the tables provided.)
Required: 1-a. Determine the price of the bonds at January 1,
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maturity is 14%. Interest is paid semiannually. (FV of $1, PV of
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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,
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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...
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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....
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Required:
1. What amount(s) related to the bonds would Charles report in its
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2. What amount(s) related to the bonds would Charles report in its
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yield 14%. Interest is paid semiannually on June 30 and December
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Required:
1. What amount(s) related to the bonds would Charles report in its
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2. What amount(s) related to the bonds would Charles report in its
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1. What amount(s) related to the bonds would Baddour report in
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