4th Edition

ISBN: 9781337690881

Author: Jay Rich, Jeff Jones

Publisher: Cengage Learning

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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 th…

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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Textbook Question

Chapter 9, Problem 48BE

Brief Exercise Debt Issued at Par

On January 1, 2020, Desmond & Co. issued 5,000 bonds with a SI,000 par value at 100. The bonds have an 8% stated rate, pay interest on June 30 and December 31, and mature on December 31 2020.

Required:

Prepare the journal entries to record the interest payment on June 30, 2020.

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Chapter 9, Problem 47BE

Chapter 9, Problem 49BE

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Chapter 9 Solutions

Cornerstones of Financial Accounting

Ch. 9 - Prob. 1DQ Ch. 9 - What is the difference between a bond and a note?...Ch. 9 - What does the face (or Par) value of a bond...Ch. 9 - Prob. 4DQ Ch. 9 - What is the stated or coupon rate of a bond?Ch. 9 - Prob. 6DQ Ch. 9 - How does a secured bond differ from an unsecured...Ch. 9 - Prob. 8DQ Ch. 9 - Prob. 9DQ Ch. 9 - Prob. 10DQ

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Solution Summary: The author explains that bonds are debt instruments issued by the borrower company to its lenders. The bondholders get a fixed rate of interest and repayment of the bonds at the maturity date

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