The Colson Company issued $300 000 of 10% bonds on January 1. 2017 The bonds are due January 1, 2022, with interest payable each July 1, and January 1. The bonds are issued at face value Prepare Colson's Journal entry for the January Issue. O Cash $300 000 Bonds Payable $300 000 $300 000 O Bonds Payable Cash $300 000 O Interest Expense Bonds Payable $15 000 $300 000 Cash $315 000 O Cash $300 000 6300000 Bonds Payable
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:
Introduction:
Journals:
Recording of a business transactions in a chronological order.
First step in the preparation of final accounts is recording journals.
Step by step
Solved in 2 steps with 1 images
