The Colson Company issued $300 000 bonds at 98 on January 1. 2017 The bonds are due January 1, 2022, with interest payable each July 1, and January 1 The Colson company records straight-line amortization Prepare Colson's Journal entry for the January lssue. O Cash $300 000 Bonds Payable 5300.000 OBonds Payable Cash 5300 000 300 000 O Cash Premium on Bonds Payable Bonds Payable $306 000 S6 000 $300 000 $294 000 Cash Discount on Bonds Payablele Bonds Payable $300 000
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:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
