TAILIEUCHUNG - Lecture Accounting principles (12th Edition): Chapter 15 - Weygandt, Kimmel, Kieso

Chapter 15 - Long-term liabilities. In this chapter, the learning objectives are: Describe the major characteristics of bonds, explain how to account for bond transactions, explain how to account for long-term notes payable, discuss how long-term liabilities are reported and analyzed. | Long-Term Liabilities 15 Learning Objectives Describe the major characteristics of bonds. Explain how to account for bond transactions. Explain how to account for long-term notes payable. 3 2 1 Discuss how long-term liabilities are reported and analyzed. 4 Long-term liabilities are obligations that are expected to be paid after one year. Bonds are a form of interest-bearing notes payable. Sold in small denominations (usually $1,000 or multiples of $1,000). Attract many investors. Corporation issuing bonds is borrowing money. Person who buys the bonds (the bondholder) is investing in bonds. LO 1 LEARNING OBJECTIVE Describe the major characteristics of bonds. 1 Types of Bonds LO 1 State laws grant corporations the power to issue bonds. Board of directors and stockholders must approve bond issues. Board of directors must stipulate number of bonds to be authorized, total face value, and contractual interest rate. Bond terms set forth in legal document known as a bond indenture. Bond certificate, typically a $1,000 face value. Bonds Issuing Procedures LO 1 Represents a promise to pay: sum of money at designated maturity date, plus periodic interest at a contractual (stated) rate on the maturity amount (face value). Interest payments usually made semiannually. Issued to obtain large amounts of long-term capital. Investment company sells the bonds for the issuing company. Bonds LO 1 Issuing Procedures LO 1 Illustration 15-1 Bond certificate Determining the Market Value of a Bond Current market price (present value) is a function of the three factors: dollar amounts to be received, length of time until the amounts are received, and market rate of interest. The market interest rate is the rate investors demand for loaning funds. LO 1 Determining the Market Value of a Bond Illustration: Assume that Acropolis Company on January 1, 2017, issues $100,000 of 9% bonds, due in five years, with interest payable annually at year-end. The purchaser of the bonds would receive the .

• Kế toán - Kiểm toán
• Bond transactions
• Accounting principles
• Lecture Accounting principles
• Nguyên lý kế toán
• Long term liabilities
• Long term notes payable
• Financial Accounting
• Principles of financial accounting
• Accounting information
• Bond trading
• Bond pricing
• Chapter 16 Long term liabilities
• In this chapter
• the learning objectives are Describe the major characteristics of bonds
• explain how to account for bond transactions
• explain how to account for long term notes payable
• discuss how long term liabilities are reported and analyzed
• Chapter 16 Long term liabilities In this chapter
• the learning objectives are: Describe the major characteristics of bonds