tailieunhanh - Long-Term Liabilities

Tiền thế chân là quan tâm có lưu ý phải trả dài hạn. Trái phiếu được nhóm các ghi chú phải trả cấp cho người cho vay nhiều được gọi là chủ sở hữu trái phiếu. | Long-Term Liabilities Chapter 15 Bonds: An Introduction A bond is an interest bearing long-term note payable. Bonds are groups of notes payable issued to multiple lenders called bondholders. principal interest rate interest payment dates Types of Bonds Term bonds Serial bonds Secured or mortgage bonds Debenture bonds Bond Prices A bond is quoted as a percent of its face value. A quote of 99½ means that a $1,000 bond sells for $1,000 × , or $995. Bond prices are affected by. time to maturity. credit rating of issuer. interest rate. Present Value The amount invested today receives a greater amount at a future date which is called the present value of a future amount. It depends upon. the amount of the future receipt. the length of time to the future receipt. interest rate for the period. Issuing Bonds Payable to Borrow Money On January 1, Granite Corp. issued $1,000,000 of 10%, 10-year bonds. January 1 Cash 1,000,000 Bonds Payable 1,000,000 To issue 10%, 10-year bonds Issuing . | Long-Term Liabilities Chapter 15 Bonds: An Introduction A bond is an interest bearing long-term note payable. Bonds are groups of notes payable issued to multiple lenders called bondholders. principal interest rate interest payment dates Types of Bonds Term bonds Serial bonds Secured or mortgage bonds Debenture bonds Bond Prices A bond is quoted as a percent of its face value. A quote of 99½ means that a $1,000 bond sells for $1,000 × , or $995. Bond prices are affected by. time to maturity. credit rating of issuer. interest rate. Present Value The amount invested today receives a greater amount at a future date which is called the present value of a future amount. It depends upon. the amount of the future receipt. the length of time to the future receipt. interest rate for the period. Issuing Bonds Payable to Borrow Money On January 1, Granite Corp. issued $1,000,000 of 10%, 10-year bonds. January 1 Cash 1,000,000 Bonds Payable 1,000,000 To issue 10%, 10-year bonds Issuing Bonds Payable to Borrow Money What is the entry for the interest payment of July 1? $1,000,000 × 10% × 1/2 = $50,000 July 1 Interest Expense 50,000 Cash 50,000 To record semiannual interest Issuing Bonds and Notes Payable Between Interest Dates On March 31, Granite Corp. sells $1,0000,000 of 10%, 10-year bonds dated January 1. March 31 Cash 1,025,000 Bonds Payable 1,000,000 Interest Payable 25,000 To issue 10%, 10-year bonds at par three months after original issue date Issuing Bonds and Notes Payable Between Interest Dates What is the July 1 interest expense? $1,000,000 × 10% × 1/4 = $25,000 June 30 Interest Expense 25,000 Interest Payable 25,000 Cash 50,000 To pay semiannual interest A 10-year, $1,000,000 bond issue is sold by Granite Corp. at 99¼ on January 1. The contract rate of interest is 10% (20 periods). Cash 992,500 Discount on Bonds Payable 7,500 Bonds Payable 1,000,000 To issue 10%, 10-year bonds at a discount Issuing Bonds Payable at a Discount Account for bonds payable .