Midterm Chapters 14-17
Chapter 14 Bonds Payable Topics
Identifying when bonds will be issued at par, premium, or discount
Calculating proceeds of issuance
Amortization of premium/discount using effective and s
Review Problems Chapters 14-17
On January 1, 2013, Shirley Corporation issued 10% bonds dated January 1, 2013, with a face
amount of $10 million. The bonds mature in 2022 (10 years). For bonds of similar risk and
I. The nature of pensions
A. Types of plans
1. Defined contribution plans - Employee gets the results of
whatever is put into the plan.
2. Defined benefit plan - Employee gets a guaranteed amount.
B. Factors influencing future pension payouts act
A. Another controversial liability issue.
B. Why has leasing become so popular?
1. Permits 100% financing because no down payment required
2. Allows rapid change
3. Allows off-balance-sheet financing
C. Controversy over which party ha
LONG-TERM LIABILITIES: BONDS AND NOTES
A. Types of bonds
1. Debentures - There is no pledge of assets, or mortgage, as
guarantee of payment of the bonds at maturity.
2. Secured bonds - Bonds that include a mortgage or pledge
ACCOUNTING FOR INCOME TAXES
A. Income statements are reports to investors and others about the
measurement of revenues and expenses under the accrual
accounting. Tax returns are reports to the Internal Revenue
about the a