会计专业英语Chap010

Copyright©2012TheMcGraw-HillCompanies,Inc.PowerPointAuthors:SusanCoomerGalbreath,Ph.D.,CPACharlesW.Caldwell,D.B.A.,CMAJonA.Booker,Ph.D.,CPA,CIACynthiaJ.Rooney,Ph.D.,CPAMcGraw-Hill/IrwinLiabilitiesChapter1010-2TheNatureofLiabilitiesDefinedasdebtsorobligationsarisingfrompasttransactionsorevents.Maturity=1yearorlessMaturity1yearCurrentLiabilitiesNoncurrentLiabilities10-3DistinctionBetweenDebtandEquityTheacquisitionofassetsisfinancedfromtwosources:Fundsfromcreditors,withadefiniteduedate,andsometimesbearinginterest.Fundsfromowners.DEBTEQUITY10-4EstimatedLiabilitiesEstimatedliabilitieshavetwobasiccharacteristics:1.Theliabilityisknowntoexist,2.Theprecisedollaramountcannotbedetermineduntilalaterdate.Example:Anautomobilewarrantyobligation.10-5Short-termobligationstosuppliersforpurchasesofmerchandiseandtoothersforgoodsandservices.MerchandiseinventoryinvoicesShippingchargesUtilityandphonebillsOfficesuppliesinvoicesCurrentLiabilities:AccountsPayableExamples10-6TotalNotesPayableCurrentNotesPayableNoncurrentNotesPayableWhenacompanyborrowsmoney,anotepayableiscreated.CurrentPortionofNotesPayableTheportionofanotepayablethatisduewithinoneyear,oroneoperatingcycle,whicheverislonger.CurrentLiabilities:NotesPayable10-7CurrentLiabilities:NotesPayablePROMISSORYNOTELocationDateafterthisdatepromisestopaytotheorderofthesumofwithinterestattherateofperannum.Miami,FlNov.1,2011SixmonthsPorterCompanyJohnCaldwellSecurityNationalBank$10,000.0012.0%TreasurerandSeniorVPSigned:Title:10-8AccruedLiabilitiesAccruedliabilitiesarisefromtherecognitionofexpensesforwhichpaymentwillbemadeinthefuture.Accruedliabilitiesareoftenreferredtoasaccruedexpenses.Examplesinclude:1.Interestpayable,2.Incometaxespayable,and3.Accruedpayrollliabilities.10-9PayrollLiabilitiesGrossPayNetPayWorkman’sCompensationStateandLocalIncomeTaxesSocialSecurityandMedicareFederalIncomeTaxVoluntaryDeductionsLessDeductions:10-10Deferredrevenueisrecorded.aliabilityaccount.Cashisreceivedinadvance.Cashissometimescollectedfromthecustomerbeforetherevenueisactuallyearned.UnearnedRevenueEarnedrevenueisrecorded.Astheearningsprocessiscompleted10-11Relativelysmalldebtneedscanbefilledfromsinglesources.BanksInsuranceCompaniesPensionPlansororLong-TermLiabilities10-12Largedebtneedsareoftenfilledbyissuingbonds.Long-TermLiabilities10-13MaturingObligationsIntendedtobeRefinancedOnespecialtypeoflong-termliabilityisanobligationthatwillmatureinthecurrentperiodbutthatisexpectedtoberefinancedonalong-termbasis.Ifmanagementhasboththeintendandabilitytorefinancesoon-to-matureobligationsonalong-termbasis,theseobligationsareclassifiedaslong-termliabilities.10-14Witheachpayment,theinterestportiongetssmallerandtheprincipalportiongetslarger.InstallmentNotesPayableEachpaymentcoversinterestfortheperiodANDaportionoftheprincipal.Long-termnotesthatcallforaseriesofinstallmentpayments.10-15AllocatingInstallmentPaymentsBetweenInterestandPrincipal1.Identifytheunpaidprincipalbalance.2.Interestexpense=UnpaidPrincipal×Interestrate.3.Reductioninunpaidprincipalbalance=Installmentpayment–Interestexpense.4.Computenewunpaidprincipalbalance.OnJanuary1,Year1,King’sInnpurchasedfurnishingsatacostof$7,581.57.Theloanwasafive-yearloanandhadaninterestrateof10%.Theannualpaymentis$2,000.Let’sprepareanamortizationtableforKing’sInn.10-16PreparinganAmortizationTableDatePaymentInterestExpenseReductioninUnpaidBalanceUnpaidBalanceJan1,Year1$7,581.57Dec.31,Year1$2,000.00$758.16$1,241.846,339.73Dec.31,Year22,000.00633.971,366.034,973.70Dec.31,Year32,000.00497.371,502.633,471.07Dec.31,Year42,000.00347.111,652.891,818.18Dec.31,Year52,000.00181.821,818.180.00$7,581.57×10%=$758.16$2,000-$758.16=$1,241.84$7,581.57-$1,241.84=$6,339.7310-17UsingtheAmortizationTableDateDescriptionDebitCreditDec.31InterestExpense758.16InterestPayable758.16Theinformationneededforthejournalentrycanbefoundontheamortizationtable.Thecashpaymentamount,theinterestexpense,andtheprincipalreductionamountareallinthetable.10-18UsingtheAmortizationTableDateDescriptionDebitCreditJan.1InterestPayable758.16NotePayable1,241.84Cash2.000.00OnJanuary1,Year2,thefirstannualpaymentwillbemadeontheinstallmentnote.Refertothepreviousentryandamortizationfortheamountsshown.10-19BondsPayableBondsusuallyinvolvetheborrowingofalargesumofmoney,calledprincipal.Theprincipalisusuallypaidbackasalumpsumattheendofthebondperiod.Individualbondsareoftendenominatedwithaparvalue,orfacevalue,of$1,000.10-20BondsPayableBondsusuallycarryastatedrateofinterest,alsocalledacontractrate.Interestisnormallypaidsemiannually.Interestiscomputedas:Principal×StatedRate×Time=Interest10-21BondsPayableBondsareissuedthroughanintermediarycalledanunderwriter.Bondscanbesoldonorganizedsecuritiesexchanges.Bondpricesareusuallyquotedasapercentageofthefaceamount.Forexample,a$1,000bondpricedat102wouldsellfor$1,020.10-22MortgageBondsConvertibleBondsJunkBondsDebentureBondsTypesofBonds10-23OnMarch1,2011,WellsCorporationissues$1,500,000of12%,10-yearbondspayable.Interestispayablesemiannually,eachMarch1andSeptember1.Assumethebondsareissuedatface