Exercise 9-12B Record bonds issued at a premium and related semian interest (The following information applies to the questions displayed below.] On January 1, Year 1, a company issues $460,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 4%, the bonds will issue at $511,511. Exercise 9-12B Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Interest Expense Date Cash Paid Decrease in Carrying Value Carrying Value 01/01/Year 1 24 460,000 06/30/Year 1 2$ 19,950 $ 10,230 $ 9,720 12/31/Year 1 19,950 10,230 9,720
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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