Chapter 14: Long-Term Liabilities Study Notes PDF
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These study notes cover Chapter 14 on long-term liabilities, focusing on bonds, amortization, and journal entries. The notes include key terms and a list of questions to help students understand the concepts. This is helpful for accounting students.
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Chapter 14: Long-Term Liabilities Study Notes ============================================= At the end of this chapter, you should be able to answer the following questions: --------------------------------------------------------------------------------- - What is a bond? What is a bond's face...
Chapter 14: Long-Term Liabilities Study Notes ============================================= At the end of this chapter, you should be able to answer the following questions: --------------------------------------------------------------------------------- - What is a bond? What is a bond's face value? Par Value? Contract rate? - What are the advantages of issuing bonds over stock? - How is the interest paid to stockholders calculated? - What does it mean if a bond is sold at par value, at a discount, at a premium? - How is a bond discount calculated? - How is a bond premium calculated? - What is the journal entry to record the sale of a bond at par, at a discount, at a premium? - What is bond discount amortization? Bond premium amortization? - What is a bond's carrying value? How do you calculate carrying value? - How do you calculate bond interest expense (the cost of issuing the bond)? - What is the journal entry to record a bond's interest expense for a bond sold at a discount? The journal entry for a bond sold at a premium? - How do you calculate the gain or loss on the retirement of a bond? - What is the journal entry to record the retirement of a bond before its maturity date? - What is the journal entry to record the retirement of a bond on its maturity date? - What is an installment note? - What is the journal entry to record the issuance of a notes payable? - What is the journal entry to record the first payment on an installment note? Terms you need to know: ----------------------- - Bond - Bond's Par Value (face value) - Bond's Maturity Date - Bond's Contract Rate (stated rate, coupon rate) - Bond issue - Bond Market Value - Bond Certificate - Bond Discount - Bond Premium - Bond Interest Expense - Bond Market Rate - Straight-Line Amortization - Long-term Notes Payable - Installment Notes - Mortgage
