ACCT 2010 May 21

ACCT 2010 May 21 - CHAPTER 10 Long Term Liabilities Bonds Payable Capital Leases Notes Payable Pensions Post retirement benefits Deferred taxes

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CHAPTER 10 Long Term Liabilities Bonds Payable Capital Leases Notes Payable Pensions Post retirement benefits Deferred taxes Bonds Payable: On issuance: Dr. Cash XXX Cr. Bonds Payable XXX to record issuance of Bonds Payable On payment of annual interest: Dr. Interest Expense XXX Cr. Cash XXX to record payment of interest Long-term liabilities are financial activities. 1. Issuance of Bonds: FACE of the Balance Sheet Premium Discount 2. Amortization of premium or discount 3. Redemption of a bond @maturity redemption early redemption Key Terms: 1. Face Value: The Principal amount of the bond as stated on the bond certificate. 2. Collateralized Bond: Backed by specific assets in case of default. 3. Debenture Bond: Backed only by creditworthiness of the company. 4. Term Bond: Entire principal is due at a specific date. 5. Serial Bond: Principal is due in installments. 6.
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This note was uploaded on 06/05/2008 for the course ACCT ACCT 2010 taught by Professor Olvera during the Spring '08 term at North Texas.

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ACCT 2010 May 21 - CHAPTER 10 Long Term Liabilities Bonds Payable Capital Leases Notes Payable Pensions Post retirement benefits Deferred taxes

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