Tiếng anh chuyên nghành kết toán kiểm toán - Phần 13

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Tiếng anh chuyên nghành kết toán kiểm toán - Phần 13introductionchapterschapter13LongTermObligationsgoalsdiscussiongoalsachievementfillintheblanksmultiplechoiceproblemschecklistandkeytermsGOALSYour goals for this long-term obligations chapter are to learn about: • Long-term notes and present value concepts. • The nature of bonds and related terminology. • Accounting for bonds payable, whether issued at par, a premium or discount. • Effective-interest amortization methods. • Special considerations for bonds issued between interest dates and for bond retirements. • Analysis, commitments, alternative financing arrangements, leases, and fair value measurement.DISCUSSIONLONG-TERM NOTESNOTES PAYABLE: The previous chapter illustrations of notes were based on the assumptionthat the notes were of fairly short duration. Now, lets turn our attention to longer term notes. Aborrower may desire a longer term for their loan. It would not be uncommon to find two, three,five-year, and even longer term notes. These notes may evidence a term loan, where interestonly is paid during the period of borrowing and the balance of the note is due at maturity. Theentries are virtually the same as you saw in the previous chapter. As a refresher, assume thatWilson issued a five-year, 8% term note -- with interest paid annually on September 30 of eachyear: 10-1-X3 Cash 10,000 Note Payable 10,000 To record note payable at 8% per annum; maturity date on 9-30-X8 12-31-XX Interest Expense 200 Interest Payable 200 To record accrued interest for 3 months ($10,000 X 8% X 3/12) at end of each year 9-30-XX Interest Expense 600 Interest Payable 200 Cash 800 To record interest payment ($10,000 X 8% = $800, of which $200 was previously accrued at the prior year end) each September 9-30-X8 Interest Expense 600 Interest Payable 200 Note Payable 10,000 Cash 10,800 To record final interest payment and balance of note at maturityOther notes may require level payments over their terms, so that the interest and principal arefully paid by the end of their term. Such notes are very common. You may be familiar with thistype of arrangement if you have financed a car or home. By the way, when you finance realestate, payment of the note is usually secured by the property being financed (if you dont pay,the lender can foreclose on the real estate and take it over). Notes thus secured are calledmortgage notes.HOW DO I COMPUTE THE PAYMENT ON A NOTE?: With the term note illustrated above, itwas fairly easy to see that the interest amounted to $800 per year, and the full $10,000 balancewas due at maturity. But, what if the goal is to come up with an equal annual payment that willpay all the interest and principal by the time the last payment is made? From my years ofteaching, I know that students tend to perk up when this subject is covered. It seems to be arelevant question to many people, as this is the structure typically used for automobile and realestate (mortgage) financing transactions. So, now you are about to learn how to calculate thecorrect amount of the payment on such a loan. The first step is to learn about future value andpresent value calculations.FUTURE VALUE: Let us begin by thinking about how invested money can grow with interest.What will be the future value of an investment? If you invest $1 for one year, at 10% interest peryear, how much will you have at the end of the year? The answer, of course, is $1.10. This iscalculated by multiplying the $1 by 10% ($1 X 10% = $0.10) and adding the $0.10 to the dollaryou started with.And, if the resulting $1.10 is invested for another year at 10%, how much will you have? Theanswer is $1.21. That is, $1.10 X 10% = $0.11, which is added to the $1.10 you started with.T ...