rest debt - Restructuring Debt 1 Restructuring Debt Randi...

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Restructuring Debt 1 Restructuring Debt Randi Padavano ACC 545 Michael Arnone September 12, 2011 Part A
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Restructuring Debt 2 Long term bond liabilities are reported at their amortized value. When long term bond liabilities are reported at amortized value it means that if a bond was issued at a premium, the total bond liability, at the end of the reporting period, will be the total par value of the bond (Kieso, Weygandt, & Warfield, T.D, 2007). However, if it was issued at a discount, it would be the total par value less unamortized discount. Only capital leases are included in the company’s liabilities and not operating leases. Capital leases are recorded at the present value of the periodic lease payments discounted at the lessee’s cost of capital or the lessor’s implicit rate (Kieso, Weygandt, & Warfield, T.D, 2007). The capital lease that is reported in the balance sheet at is the net of principal payment of the lease. Mortgage payables are reported in the financial statements in the similar fashion as the
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rest debt - Restructuring Debt 1 Restructuring Debt Randi...

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