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  3. on january 1,2021 , instaform, inc., issued 10% bo

On January 1,2021 , Instaform, Inc., issued 10% bonds with a face amount of $50...

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Accounting

image On January 1,2021 , Instaform, Inc., issued 10% bonds with a face amount of $50 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. Required: 1. Determine the price of the bonds at January 1,2021, 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 1,2021 , and 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

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