Chapter 10 - - a schedule that shows the break- down...

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Chapter 10 Current liability – get rid of within 12 months Long term liability – debts or other obligations that will not be paid within one year How many places does a mortgage payable show on the sheet? TWO Pg.448 Present value of $1 - the value today of $1 to be received or paid at some future date, given a specified interest rate Present value of annuity - you are present valuing something in the future. Pg.456 Accounting for long-term liabilities *Pg.457 Interest bearing notes - borrowed money that has interest on it. You no the interest ahead of time Pg.458 Mortgage Payable - a written promise to pay a stated amount of money at one or more specified future dates; certain assest, usually real estates, are pledged as collateral. Mortgage Amortization schedule
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Unformatted text preview: - a schedule that shows the break- down between interest and principal for each payment over the life of a mortgage. Pg.460 Accounting for lease obligations Operating lease- no intent of owning the equipment or land. Ex. Staples lease of computers for tax season. Capital lease- lease that you want to own equipment or land after a certain time period. Ex. Paying something and owning it after certain time Bond- a contract in which a borrower promises to pay a specified rate of interest to a lender for each period the bond is outstanding and repay the principal at the maturity date. Pg.469 Bonds payable issued at face value-what you pay is what you get in return Ex. Cash 100,000 Bonds Payable 100,000 Pg. *-study page...
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Chapter 10 - - a schedule that shows the break- down...

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