Business, 16.03.2020 19:29 carligreen090

On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $51 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 semiannual

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 9%. Determine the price of the bonds at January 1, 2021.
2-b. Assume the market rate was 9%. 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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Answer from: susanasalleyp3enwe

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.

Answer from: Quest

among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.

Answer from: Quest

Answer50% percent;

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On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $51 million, dated Janua...