中级财务会计英文ch08

Chapter8-1LiabilitiesChapter8IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldPreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbaraChapter8-21.Explainthecharacteristicsofaliability.2.Accountforcompensatedabsences.3.Understandandrecordpayrolltaxesanddeductions.4.Recordpropertytaxes.5.Accountforwarrantycosts.7.Explaintheterms“probable,”“reasonablypossible,”and“remote”relatedtocontingencies.8.Recordandreportalosscontingency.9.Discloseagaincontingency.LearningObjectivesChapter8-310.Explainthereasonsforissuinglong-termliabilities.11.Understandthecharacteristicsofbondspayable.12.Recordtheissuanceofbonds.13.Amortizediscountsandpremiumsunderthestraight-linemethod.14.Computethesellingpriceofbonds.15.Amortizediscountsandpremiumsundertheeffectiveinterestmethod.16.Explainextinguishmentofliabilities.17.Understandbondswithequitycharacteristics.18.Accountforlong-termnotespayable.19.Understandthedisclosureoflong-termliabilities.LearningObjectivesChapter8-4DefinedbySFACNo.6as:Probablefuturesacrificesofeconomicbenefitsarisingfrompresentobligationsofaparticularentitytotransferassetsorprovideservicestootherentitiesinthefutureasaresultofpasttransactionsorevents.LiabilitiesChapter8-51.Itinvolvesapresentdutyorresponsibilityofthecompanytooneormoreentitiesthatwillbesettledbytheprobablefuturetransferoruseofassetsataspecifiedordeterminabledate,onoccurrenceofaspecificevent,orondemand.2.Thedutyorresponsibilityobligatesthecompany,leavingitlittleornodiscretiontoavoidthefuturesacrifice.3.Thetransactionorothereventobligatingthecompanyhasalreadyhappened.ThreeEssentialCharacteristicsofaLiabilityChapter8-6Interestthatisnotexplicitlyspecifiedinthetermsoftheliability.Neednotberecognized.Liabilities-ImplicitInterestChapter8-7Currentliabilitiesareobligationswhoseliquidationisexpectedtorequiretheuseofexistingcurrentassetsorthecreationofothercurrentliabilitieswithinoneyearoranoperatingcycle,whicheverislonger.CurrentLiabilitiesChapter8-8HavingContractualAmountAccountspayableNotespayableCurrentlymaturingportionoflong-termdebtDividendspayableAdvancesandrefundabledepositsAccrueditemsUnearneditemsTypeofCurrentLiabilitiesChapter8-9AmountDependsonOperationsSales(use)taxesPayrolltaxesIncometaxesBonusesTypeofCurrentLiabilitiesChapter8-10AmountMustBeEstimatedPropertytaxesWarrantiesPremiumsandcouponsOthercontingenciesTypeofCurrentLiabilitiesChapter8-11Obligationsarisingfromthecompany’songoingoperations--includestheacquisitionofinventory,supplies,materialsandservices.Commonlycalledtradepayables.Othercurrentpayablesshouldbereportedseparately.AccountsPayableChapter8-12Notesthatarisefromthesametypesoftransactionsastradepayables.Canbesecuredorunsecured.Canbeinterest-bearingornoninterest-bearing.--Interest-bearingnotescarryastatedrateofinterest.--Noninterest-bearingnotesreflectaneffectiverateofinterestorayield.Short-TermNotesPayableChapter8-13Therateofinterestisspecifiedandiscalledthestatedrate.Thedebtor(orborrower)receivescash,otherassets,orservices.Thedebtorrepaysthefaceamountofthenoteplusinterestatthestatedrate.Short-TermNotesPayableInterest-BearingChapter8-14OnSeptember1,EagleBoatsborrows$80,000fromCookeBank.Thenoteisduein180daysandhasastatedinterestrateof9%.RecordtheborrowingonSeptember1.Interest-BearingNotesExampleChapter8-15GENERALJOURNALPage:56DateDescriptionPRDebitCredit1-SepCash80,000NotesPayable80,000torecordreceiptofshort-termloanproceedsfromCookeBankOnSeptember1,EagleBoatsborrows$80,000fromCookeBank.Thenoteisduein180daysandhasastatedinterestrateof9%.RecordtheborrowingonSeptember1.Interest-BearingNotesExampleChapter8-16HowmuchinterestisduetoCookeBankatyear-end,onDecember31?a.$2,400b.$3,600c.$7,200d.$87,200Interest-BearingNotesExampleChapter8-17HowmuchinterestisduetoCookeBankatyear-end,onDecember31?a.$2,400b.$3,600c.$7,200d.$87,200Interestiscalculatedas:PrincipalStatedPortionAmountRateofofYear=ofNoteInterestOutstanding$80,000×9%×4/12=$2,400interestduetoCookeBank.Interest-BearingNotesExampleChapter8-18GENERALJOURNALPage:28DateDescriptionPRDebitCreditAssumeEagleBoats’fiscalyear-endisDecember31.Recordthenecessaryadjustmentatyear-end.Interest-BearingNotesExampleChapter8-19GENERALJOURNALPage:28DateDescriptionPRDebitCredit31-DecInterestExpense2,400InterestPayable2,400toaccrueinterestonnoteduetoCookeBank.AssumeEagleBoats’fiscalyear-endisDecember31.Recordthenecessaryadjustmentatyear-end.Interest-BearingNotesExampleChapter8-20GENERALJOURNALPage:12DateDescriptionPRDebitCreditAssumeEagleBoats’fiscalyear-endisDecember31.RecordthenecessaryjournalentrywhenthenotematuresonFebruary28.Interest-BearingNotesExampleChapter8-21GENERALJOURNALPage:12DateDescriptionPRDebitCredit28-FebInterestPayable2,400InterestExpense1,200NotePayable80,000Cash83,600topayoffnoteandinterestAssumeEagleBoats’fiscalyear-endisDecember31.RecordthenecessaryjournalentrywhenthenotematuresonFebruary28.Interest-BearingNotesExampleChapter8-22Noteswithoutastatedinterestratecarryanimplicit,oreffective,rate.Thefaceofthenoteincludestheprincipalandtheinterest.Theborrowe