SaaS
Warrant Debt Discount — Monthly Amortization
Amortizing the warrant-related debt discount into interest expense over the loan period.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interest Expense (Debt Discount) | Expense (+) | 1,000.00 | - |
| Debt Discount (Contra-Liability) | Contra-Liability (-) | - | 1,000.00 |
💡 Accountant's Note
The effective interest rate method is used to amortize the debt discount. This increases the interest expense above the cash coupon rate to reflect the full economic cost of the debt including the warrant.
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