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Exam#3 写字板

Exam#3...

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BMGT 220 EXAM #3 Study Guide CH-10 Liability A. Current  liability-satisfy  2 Criteria   (Note/account/wage  & payroll/payroll taxes  payable,  unearned  revenue,  and   BOND INTEREST;  the  1st category  under  liabilities  on  balance  sheet) 1. Note  payable   Loan: Cash XXX Note payable XXX                Interest  not incurred:             Interest expense XXX Interest payable XXX     Maturity: Note payable XXX Interest payable XXX Cash XXX 2. Sales  taxes  payable Cash XXX Sales XXX Sales taxes payable XXX           (Sale  + tax)  / (1+tax  rate)  = sales          Taxes  are  NOT  an  expense;  companies  serves  only  as  a collection  AGENT     3. Payroll and  payroll taxes  payable Wages  and  income  taxes  payable: Salaries and wages expense XXX FICA taxes payable XXX Federal income taxes payable XXX State income taxes payable XXX Salaries and wages payable XXX Wage  paid:
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Salaries and wages payable XXX Cash XXX Payroll taxes  payable  (result from  hiring  works) Payroll tax expense XXX FICA tax payable XXX Federal unemployment tax payable XXX State unemployment taxes payable XXX Both  income  and  payroll tax include  FICA tax 4. Unearned  revenue  (e.g.:  magazine  subscriptions) Revenue  unearned: Cash XXX Unearned revenue XXX Revenue  earned: Unearned revenue XXX Revenue XXX B. Long- term  liabilities I. Bond- A form  of interest- bearing  notes  payable 1. Advantage  & disadvantage ? Stockholder  control  is not affected ? Tax  saving  result ? Earnings  per  share  may  be  higher ? Pay  interest  (contractual,  based  on  face  value)  on  a periodic  basis   (semiannual)  and  pay  principal  (face  value)  at the  due  date 2. Type  of bond a. Secured  bonds  e.g.  mortgage  bonds,  sinking  fund  bond Unsecured  bonds  (debenture  bonds) b. Term  and  serial  bonds c. Registered  and  bearer  (coupon)  bonds   d. Convertible  and  callable  bonds 3. Determinants  of market  value  
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? The  dollar  amounts  to be  received ? The  length  of time ? The  market  interest  rate  of interest  (investors  demand) ? Bond s  type  affect  market  rate 4. Issuing  bonds a. At face  value Contractual  interest  rate  = market  interest  rate;  issuance  price  = face  value Cash XXX Bonds payable XXX b. Discount ? Additional  cost  of borrowing,  recorded  as  bond  interest  expense; ? Yield% =discount  price /issuance  price ? Contractual  interest  rate  < market  interest  rate;   Issuance  price  < face  value;   Cost  of borrowing  > interest  payment ? Total cost  = interest  payment  + bond  discount   =principal  at maturity + interest  payment    issuance  price ? Total liability = bonds  payable  - discount Cash XXX Discount on bonds payable XXX contra-liability, deducted from bounds payable
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