On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million, dated January 1. The bonds mature in XXXXXXXXXXyears). The market yield for bonds of similar risk and maturity...

On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 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.