Answer:
1a. The price of the bonds at 12% yield is $43,326,388.60
1b. The journal entries to record the issuance are as follows:
Dr Cash $43,326,388.60
Dr Discount on the bond $7,673,611.40
Cr Bonds payable $51,000,000
2aAt the market rate of 9% bonds issue price is $55,692,404.03
2b.Journal entries when market rate is 9%
Dr Cash $55,692,404.03
Cr Premium on the bond $4,692,404.03
Cr Bonds payable $51,000,000.00
3.The journal entries if Broadcourt Electronics purchashed the entire issue as shown in 2 above
Dr Premium on the bonds $4,692,404.03
Dr Investment in bonds $51,000,000.00
Cr Cash $55,692,404.03
Explanation:
Find attached.