tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Chapter 10 - Kimmel, Weygandt, Kieso
Chapter 10 - Reporting and analyzing liabilities. In this chapter students will be able to: Explain how to account for current liabilities, describe the major characteristics of bonds, explain how to account for bond transactions, discuss how liabilities are reported and analyzed. | REPORTING AND ANALYZING LIABILITIES Accounting, Fifth Edition 10 After studying this chapter, you should be able to: Explain a current liability and identify the major types of current liabilities. Describe the accounting for notes payable. Explain the accounting for other current liabilities. Identify the types of bonds. Prepare the entries for the issuance of bonds and interest expense. Describe the entries when bonds are redeemed. Identify the requirements for the financial statement presentation and analysis of liabilities. Learning Objectives Preview of Chapter 10 Accounting Fifth Edition Kimmel Weygandt Kieso Two key features: Company expects to pay the debt from existing current assets or through the creation of other current liabilities. Company will pay the debt within one year or the operating cycle, whichever is longer. Current Liabilities LO 1 Explain a current liability and identify the major types of current liabilities. Current liabilities include notes payable, accounts payable, unearned revenues, and accrued liabilities such as taxes, salaries and wages, and interest. What is a Current Liability? To be classified as a current liability, a debt must be expected to be paid: out of existing current assets. by creating other current liabilities. within 2 years. both (a) and (b). LO 1 Explain a current liability and identify the major types of current liabilities. Current Liabilities Question LO 2 Describe the accounting for notes payable. Notes Payable Written promissory note. Usually require the borrower to pay interest. Those due within one year of the balance sheet date are usually classified as current liabilities. Current Liabilities Illustration: First National Bank agrees to lend $100,000 on September 1, 2014, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1. When a company issues an interest-bearing note, the amount of assets it receives generally equals the note’s face value. Notes payable 100,000 Cash 100,000 | REPORTING AND ANALYZING LIABILITIES Accounting, Fifth Edition 10 After studying this chapter, you should be able to: Explain a current liability and identify the major types of current liabilities. Describe the accounting for notes payable. Explain the accounting for other current liabilities. Identify the types of bonds. Prepare the entries for the issuance of bonds and interest expense. Describe the entries when bonds are redeemed. Identify the requirements for the financial statement presentation and analysis of liabilities. Learning Objectives Preview of Chapter 10 Accounting Fifth Edition Kimmel Weygandt Kieso Two key features: Company expects to pay the debt from existing current assets or through the creation of other current liabilities. Company will pay the debt within one year or the operating cycle, whichever is longer. Current Liabilities LO 1 Explain a current liability and identify the major types of current liabilities. Current liabilities include notes payable, .
đang nạp các trang xem trước
