Five thousand bonds with a face value of $1000 each, are sold at 102. The entry to record the issuance is Cash 5100000 Discount on Bonds Payable 100000 Bonds Payable 5000000 Cash 5100000 Bonds Payable 5100000 Cash 5000000 Premium on Bonds Payable 100000 Bonds Payable 5100000 Cash 5100000 Premium on Bonds Payable 100000 Bonds Payable 5000000
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:
Five thousand bonds with a face value of $1000 each, are sold at 102. The entry to record the issuance is
| Cash | 5100000 | |
| Discount on Bonds Payable | 100000 | |
| Bonds Payable | 5000000 |
| Cash | 5100000 | |
| Bonds Payable | 5100000 |
| Cash | 5000000 | |
| Premium on Bonds Payable | 100000 | |
| Bonds Payable | 5100000 |
| Cash | 5100000 | |
| Premium on Bonds Payable | 100000 | |
| Bonds Payable | 5000000 |
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