基础会计(英文版)(第二版)Chapter-14-Liabilities-of-a-Corporat课件.ppt

1、Chapter 14Liabilities of a Corporation:Bonds Payable,Leases and OthersBonds PriceBond CertificateInterest PaymentsFace Value Payment at End of Bond TermAt Bond Issuance DateCompany Issuing BondsSubsequent PeriodsInvestor Buying BondsCompany Issuing BondsInvestor Buying BondsBonds PayablenBonds usual

2、ly involve the borrowing of a large sum of money.nIndividual bonds are often denominated with a par value,or face value,or maturity valuenBonds can be sold on organized securities exchanges.nBond prices are usually quoted as a percentage of the face amount.The Issuance of Bonds Payable Guangli Co.Lt

3、d on July 1,203,issues 1 000 000 yuan of 12%,10 year bonds payable.All the bonds bear the July 1,203 date,and interest is computed from this date.Interest on the bonds is payable semiannually,each July 1 and January 1.Assuming all the bonds are sold at par July 1 Cash 1 000 000 Bonds Payable 1 000 0

4、00The Issuance of Bonds PayablenAt each interest payment dateBond interest Expense 60 000 Cash 60 000n On the maturity dateBonds Payable 1 000 000 Cash 1 000 000 Bonds Bought between Interest Dates Bonds are often sold between interest dates.The selling price of the bond is computed as:Present value

5、 of the bond+Accrued interest since the last interest payment=Selling price of the bondBonds Issued at a DiscountCash 980 000Discount on Bonds Payable 20 000 Bonds Payable 1 000 000Presentation of Bonds Payable on Balance SheetLong-term liabilities:12%bonds payable,due in 10 years 1 000 000 Less:Dis

6、count on bonds payable 20 000 980 000Amortizing Discount-The Straight-line MethodBond Interest Expense 61 000 Cash 60 000 Discount on Bond Payable 1 000Bonds Issued at a Premium Cash 1 020 000 Bonds Payable 1 000 000 Premium on Bonds Payable 20 000Bond Interest Expense 59 000Premium on Bond Payable

7、1 000 Cash 60 000Amortizing Premium-The Straight-line MethodEffective Interest Method of Amortization Interest accrues on an outstanding debt at a constant percentage of the debt each period.Interest each period is recorded as the effective market rate of interest multiplied by the outstanding balan

8、ce of the debt(during the interest period).Amortization Table for Bonds Sold at a DiscountAmortization Table for Bonds Sold at a Discount(100 000 yuan,3-year bonds,12%interest payable semiannually,sold at 95 233 yuan to yield 14%compounded semiannually)(A)(B)(C)(D)(E)Interest Payment DateInterest Ex

9、pense DebitCash CreditDiscount on Bonds PayableCarrying Value of Bonds Payable(E14%1/2)(100 00012%1/2)(B C)Issue Price95 23312/31/2046 6666 00066695 89906/30/2056 7136 00071396 61212/31/2056 7636 00076397 37506/30/2066 8166 00081698 19112/31/2066 8736 00087399 06406/30/2076 9366 000936100 00040 767

10、36 000 4 767Amortization Table for Bonds Sold at a PremiumAmortization Table for Bonds Sold at a Premium(100 000 yuan,3-year bonds,12%interest payable semiannually,sold at 105 076 yuan to yield 10%compounded semiannually)(A)(B)(C)(D)(E)InterestPayment DateInterest ExpenseDebitCash CreditPremium onBo

11、nds PayableCarrying Value of Bonds Payable(E 10%1/2)(100 000 12%1/2)(C-B)Issue Price105 07612/31/2045 2546 000746104 33006/30/2055 2166 000784103 54612/31/2055 1776 000823102 72306/30/2065 1366 000864101 85912/31/2065 0936 000907100 95206/30/2075 0486 000952100 00030 92436 000 5 076Premium and Disco

12、unt Amortization Compared12/31/204 06/30/207 100 000105 07695 233Premium AmortizationDiscount Amortization12/31/20412/31/204Leases A lease is a contract in which the lessor gives the lessee the right to use an asset for a specified period of time in exchange for periodic rental payments.Classificati

13、on of LeasesnOperating leasenthe lessor gives the right to use leased property for a limited period of time,but retains the usual risks and rewards of ownership nCapital leasen provides financing to the lessee for the eventual purchase of the property,or provides the lessee with use of the property

14、over most of its useful life Mortgage Notes Payable Assume that on June 30,204,Guangli Co.Ltd issued a 300 000 yuan mortgage note to finance the purchase of an office apartment.The note bears interest at the annual rate of 12%(or 1%per month)and will be paid in monthly installments of 3 200 yuan over a period of 15 years.Mortgage Notes Payable The entry to record the first monthly mortgage payment on July 30,204 would be:Interest Expense 3 000Mortgage Payable 200 Cash 3 200