On January 1, 2012, Instaform Company issued 10% bonds with a principal amount of $ 50 million, dated January 1. The bonds matur
e in 2031 (20 years). The market yield for bonds of similar risk and maturity is 12% Interest is paid semiannually. Required:
1. Determine the price of the bonds at January 1, 2012, and prepare the journal entry to record their issuance by Instaform.
2. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2012, and prepare the journal entry to record their issuance by Instaform.
3. Assume Broadcourt Electronics purchased the entire issue in a private placement the bonds. Using the data in requirement 2. prepare the journal entry to record their purchase by broadcourt
