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.

When Patey Pontoons issued 8% bonds on January 1, 2024, with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2024. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2024. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2024. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2024? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2024? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2027. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1. PVA of $1.…

On January 1, 2024, Instaform, Incorporated, issued 12% bonds with a face amount of $65 million, dated January 1. The bonds mature in 2043 (20 years). The market yield for bonds of similar risk and maturity is 14%. Interest is paid semiannually. Required: 1-a. Determine the price of the bonds at January 1, 2024. 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, 2024. 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.

The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 13.25% bonds having a face amount of $90.4 million. The bonds had been issued in 2013 and had a remaining discount of $3.4 million at December 31, 2020. On January 1, 2021, Indian River Electronics called the bonds before their scheduled maturity at the call price of 104. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet

On January 1, 2021, Darnell Window and Pane issued $18 million of 10 year, zero-coupon bonds for $5,795,518.Required:1. Prepare the journal entry to record the bond issue.2. Determine the effective rate of interest.3. Prepare the journal entry to record annual interest expense at December 31, 2021.4. Prepare the journal entry to record annual interest expense at December 31, 2022.5. Prepare the journal entry to record the extinguishment at maturity.

On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1, 2021, with a face amount of $20 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.Required:1. Prepare the journal entry to record interest on June 30, 2021, using the straight-line method.2. Prepare the journal entry to record interest on December 31, 2021, using the straight-line method.

On January 1, 2024, Instaform, Incorporated, issued 14% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2043 (20 years). The market yield for bonds of similar risk and maturity is 16%. Interest is paid semiannually. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 12%. Determine the price of the bonds at January 1, 2024. 2-b. Assume the market rate was 12%. 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.

Bombay Corporation issued 8% bonds on January 1, 2021, with a face value of $700,000, the market yield for bonds of similar risk and maturity was 10%. The bonds mature December 2023 (3 years). Interest is paid semiannually on June 30 and December 31.  Required:  1. Determine the price of the bonds on January 31, 2021.  2. Prepare the journal entry to record their issuance by Bombay on January 1, 2021. (See the below template) 3. Prepare an amortization schedule that shows the effective interest rate each period. 4. Prepare the journal entry to record interest on June 30, 2022. Date Cash Payment Effective Interest Increase in balance. Discount Reduction Outstanding Balan

Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2021, for $283,294,720. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31.Required:1. What would be the net amount of the liability Myriad would report in its balance sheet at December 31, 2021?2. What would be the amount related to the bonds that Myriad would report in its income statement for the year ended December 31, 2021?3. What would be the amount(s) related to the bonds that Myriad would report in its statement of cash flows for the year ended December 31, 2021?

On June 30, 2021, Highland Co. issued $600,000, 8% bonds, due to mature on June 30, 2026.  Interest is paid semi-annually on December 31 and June 30.  Similar bonds at the time of sale were being traded at a market rate of 7%. Required: Calculate the value of the bond at the time of issuance, and record the initial journal entry. Assuming that Highland has a June 30 year end, provide any additional required entries (other than in part a) until June 30, 2022.