会计学原理-约翰·J·怀尔德版-上海交通大学-14.ppt

Chapter14,Long-TermLiabilities,Contents,BondsCharacteristicsofBondsBondPriceParvalueBondDiscountBondPremiumBondBondRetirementLong-termNotePayableDecisionAnalysis:Debt-to-EquityRatio,ConceptualLearningObjectives,C1:ExplainthetypesandpaymentpatternsofnotesC2:Appendix14A:ExplainandcomputethepresentvalueofanamounttobepaidatafuturedateC3:Appendix14C:DescribetheaccrualofbondinterestwhenbondpaymentsdonotalignwithaccountingperiodsC4:Appendix14D:Describetheaccountingforleasesandpensions,A1:ComparebondfinancingwithstockfinancingA2:AssessdebtfeaturesandtheirimplicationsA3:Computethedebt-to-equityratioandexplainitsuse,AnalyticalLearningObjectives,P1:PrepareentriestorecordbondissuanceandbondinterestexpenseP2:ComputeandrecordamortizationofbonddiscountP3:ComputeandrecordamortizationofbondpremiumP4:RecordtheretirementofbondsP5:Prepareentriestoaccountfornotes,ProceduralLearningObjectives,Bondsdonotaffectstockholdercontrol.,Interestonbondsistaxdeductible.,Bondscanincreasereturnonequity.,AdvantagesofBonds,A1,Bondsrequirepaymentofbothperiodicinterestandparvalueatmaturity.,Bondscandecreasereturnonequitywhenthecompanypaysmoreininterestthanitearnsontheborrowedfunds.,DisadvantagesofBonds,A1,Bondmarketvaluesareexpressedasapercentoftheirparvalue.,BondTrading,A2,BondIssuingProcedures,A1,Corporation,Investors,BasicsofBonds,A1,BondIssueDate,BondInterestPayments,InterestPayment=BondParValue*StatedInterestRate,BasicsofBonds,A1,Corporation,Investors,BasicsofBonds,A2,BondInterestPayments,CouponPayment=BondParValue*StatedInterestRate,BondPricePresentValueofaBond,A1,MaturityPayment,C=couponpaymentn=numberofpaymentsi=marketinterestrateM=valueatmaturity,orparvalue,TwoImportantTables,P1,TwoImportantTables,P1,CalculatetheissuepriceofRoseInc.sbonds.ParValue=$1,000,000IssuePrice=?StatedInterestRate=10%MarketInterestRate=12%InterestDates=6/30and12/31BondDate=Jan.1,2008MaturityDate=Dec.31,2012(5years),PresentValueofaBond,C2,PresentValueofaBond,1.Semiannualrate=6%(Marketrate12%2)2.Semiannualperiods=10(Bondlife5years2),$1,000,00010%=$50,000,C2,PreparetheentryforJan.1,2008,torecordthefollowingbondissuebyRoseCo.ParValue=$1,000,000StatedInterestRate=10%MarketInterestRate=12%InterestDates=6/30and12/31BondDate=Jan.1,2008MaturityDate=Dec.31,2012(5years),StatedinterestParValue,Bondwillsellatapremium.,IssuePrice=108.111%(rounded)ofparvalue,BondDiscountorPremium,P1,KingCo.issuesthefollowingbondsonJanuary1,2008ParValue=$1,000,000StatedInterestRate=10%InterestDates=6/30and12/31BondDate=Jan.1,2008MaturityDate=Dec.31,2027(20years),IssuingBondsatPar,P1,$1,000,00010%year=$50,000Thisentryismadeeverysixmonthsuntilthebondsmature.,IssuingBondsatPar,TheentryonJune30,2008,torecordthefirstsemiannualinterestpaymentis.,P1,OnDec.31,2027,thebondsmature,KingCo.makesthefollowingentry.,IssuingBondsatPar,Thedebthasnowbeenextinguished.,P1,BondDiscountorPremium,P1,PreparetheentryforJan.1,2008,torecordthefollowingbondissuebyRoseCo.ParValue=$1,000,000IssuePrice=92.640%ofparvalueStatedInterestRate=10%MarketInterestRate=12%InterestDates=6/30and12/31BondDate=Jan.1,2008MaturityDate=Dec.31,2012(5years),IssuingBondsataDiscount,Bondwillsellatadiscount.,P2,AmortizingthediscountincreasesInterestExpenseovertheoutstandinglifeofthebond.,$1,000,000*92.6400%,IssuingBondsataDiscount,P2,Contra-LiabilityAccount,OnJan.1,2008,RoseCo.wouldrecordthebondissueasfollows.,IssuingBondsataDiscount,P2,IssuingBondsataDiscount,P2,$73,56010periods=$7,360$1,000,00010%=$50,000,Makethefollowingentryeverysixmonthstorecordthecashinterestpaymentandtheamortizationofthediscount.,IssuingBondsataDiscount,P2,P2,Bothmethodsreportthesameamountofinterestexpenseoverthelifeofthebond.,Straight-LineandEffectiveInterestMethods,P2,PreparetheentryforJan.1,2008,torecordthefollowingbondissuebyRoseCo.ParValue=$1,000,000IssuePrice=108.1110%ofparvalueStatedInterestRate=10%MarketInterestRate=8%InterestDates=6/30and12/31BondDate=Jan.1,2008MaturityDate=Dec.31,2012(5years),IssuingBondsataPremium,Bondwillsellatapremium.,P3,AmortizingthepremiumdecreasesInterestExpenseoverthelifeofthebond.,$1,000,000108.1110%,IssuingBondsataPremium,P3,Adjunct-LiabilityAccount,OnJan.1,2008,RoseCo.wouldrecordthebondissueasfollows.,IssuingBondsataPremium,P3,Usingthestraight-linemethod,thepremiumamortizationwillbe$8,115everysixmonths.$81,11010periods=$8,111,IssuingBondsataPremium,P3,$81,11010periods=$8,111$1,000,00010%=$50,000,Thisentryismadeeverysixmonthstorecordthecashinterestpaymentandtheamortizationofthepremium.,IssuingBondsataPremium,P3,P3,Jan.1,Apr.1,Dec.31,Endofaccountingperiod,Oct.1,InterestPaymentDates,Atyear-end,anadjustingentryisnecessarytorecognizebondinterestexpenseaccruedsincethemostrecentinterestpayment.,3monthsaccruedinterest,AccruingBondInterestExpense,C3,AtMaturityBeforeMaturityCarryingValueRetirementPrice=GainCarryingValueRetirementPrice=Loss,BondRetirement,P4,SecuredandUnsecured,TermandSerial,RegisteredandBearer,ConvertibleandCallable,TypesofBonds,A2,BondRetirement,Thecarryingvalueofthebondatmaturityshouldequalitsparvalue.Sometimesbondsareretiredpriortotheirmaturity.Twocommonwaystoretirebondsarethroughtheexerciseofacallableoptionorthroughpurchasingthemontheopenmarket.Callablebondspresentseveralaccountingissuesincludingcalculatinggainsandlosses.,Areyoureadytodiscusslong-termnotespayable?,Long-TermNotesPayable,C1,NoteMaturityDate,NotePayable,Cash,Company,Lender,NoteDate,Whenistherepaymentoftheprincipalandinterestgoingtobemade?,Long-TermNotesPayable,C1,NoteMaturityDate,NoteDate,Long-TermNotesPayable,SinglePaymentofPrincipalplusInterest,C1,Long-TermNotesPayable,C1,InstallmentNoteswithEqualPrincipalPayments,Theprincipalpaymentsare$10,000eachyear.Interestexpensedecreaseseachyear.,Annualpaymentsdecrease.,C1,InstallmentNoteswithEqualPayments,Theprincipalpaymentsincreaseeachyear.Interestexpensedecreaseseachyear.,Annualpaymentsareconstant.,C1,Alegalagreementthathelpsprotectthelenderiftheborrowerfailstomaketherequiredpayments.Givesthelendertherighttobepaidoutofthecashproceedsfromthesaleoftheborrowersassetsspecificallyidentifiedinthemortgagecontract.,MortgageNotesandBonds,C1,Thisratiohelpsinvestorsdeterminetheriskofinvestinginacompanybydividingitstotalliabilitiesbytotalequity.,Debt-to-EquityRatio,A3,Accruedinterest,Investorpaysbondpurc