Financial Accounting Chapter Liabilities

Slides:

Advertisements

Similar presentations

Review of the Accounting Process INTERMEDIATE ACCOUNTING I CHAPTER 2 This presentation is under development.

Advertisements

Chapter 9 P9-4 Pg. 503 JeffWilsonAnnieSarah. Question During 2007, Riverside Company completed the following two transactions. The annual accounting period.

Current and Long-Term Liabilities Chapter 9. Account for current liabilities and contingent liabilities.

LONG-TERM LIABILITIES Accounting Principles, Eighth Edition

FINANCIAL ACCOUNTING A USER PERSPECTIVE Hoskin Fizzell Davidson Second Canadian Edition.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 Sources of Capital: Debt © The McGraw-Hill Companies, Inc., Part One: Financial Accounting.

9-1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA.

Current Liabilities and the Time Value of Money – Chapter 8 Financial & Managerial Accounting, 8th Edition by Needles, Powers, Crosson.

LIABILITIES. Mugan-Akman Liabilities obligations of an entity to make a future payment or to deliver goods or services to the third parties in the.

Long-Term Liabilities - Chapter 10 Financial & Managerial Accounting, 8th Edition by Needles, Powers, Crosson.

Reporting and Interpreting Liabilities

© The McGraw-Hill Companies, Inc., 2001 Irwin/McGraw-Hill Chapter 9 Reporting and Interpreting Liabilities.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Reporting and Interpreting Liabilities Chapter 9.

Recording Business Transactions The Cash and Accrual Bases of Accounting Chapters 2 and 3.

Bal. sheet - 1 THE BALANCE SHEET. Bal. sheet - 2 BALANCE SHEET Resources (Assets) Claims against resources (Liabilities) Remaining claims accruing to.

CH 9 & 10 REVIEW. 9.1-Notes Payable What is a note payable? Short term loan that charges interest How is Notes Payable Classified? Liability Journalize.

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA CHAPTER.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin 10-1 LIABILITIES Chapter 10.

Current Liabilities, Contingencies, and the Time Value of Money

BSAD 221 Introductory Financial Accounting Donna Gunn, CA

Long-Term Debt Financing Long-Term Debt Financing C H A P T E R 11.

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Liabilities Chapter 10.

COPYRIGHT © 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Cash, Short-term Investments and Accounts Receivable

1 Accounting 100 Chapter 2 Analyzing Business Transactions.

The Balance Sheet and Financial Disclosures

Chapter 11  Long - Term Liabilities. Chapter 11Mugan-Akman Long-term Financing Capital or Long-term Liability advantages of raising capital.

The Statement of Cash Flows Chapter 4 The Statement of Cash Flows Answers u u How Much Cash Was Provided by Operations u u What Amount of Property and.

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA CHAPTER.

PRINCIPLES OF FINANCIAL ACCOUNTING

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Chapter 9 Reporting and Interpreting Liabilities Acct 2301 Fall 09.

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide 10-1 LIABILITIES Chapter 10.

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-1 CHAPTER 7 Accounting for and Presentation of Liabilities McGraw-Hill/Irwin.

Chapter 3 – Accruals and Adjustments

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide 10-1 LIABILITIES Chapter 10.

Chapter 12 Long-Term Liabilities

 Curb Company completed various transactions during  The annual accounting period ends December 31,  Prepare journal entries for each transaction.

Reporting and Interpreting Liabilities Chapter 9 McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc.

Accounting for Long-Term Liabilities

Types of Adjusting Entries

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.

Chapter 3 Accrual Accounting Concepts. Why is Accrual Accounting Needed? Cash received or paid Revenue earned Expense incurred.

Reporting and Interpreting Liabilities Chapter 9 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

CHAPTER 7 ACCOUNTING FOR AND PRESENTATION OF LIABILITIES McGraw-Hill/Irwin©The McGraw-Hill Companies, Inc., 2002.

Slide 9-1 Current Liabilities and the Time Value of Money Chapter 9.

READING 22 FINANCIAL REPORTING MECHANICS

Accounting for and Presentation of Liabilities

Spring 2017 | Joana Marinova Monday, April 24th, 1:30 pm

CHAPTER 7 Setting Up A Merchandising Company.

Intercorporate Investments and Consolidations

Long-Term Liabilities

Liabilities Chapter 10 Chapter 10: Liabilities.

Financial Accounting:

University of 6th of October, Egypt

Chapter 10: accruals and prepayment

Types of Adjusting Entries

Chapter Ten: Liabilities.

Accrual Accounting and Financial Statements

11 Long-term Liabilities.

Balance Sheet Concepts: Assets, Liabilities and Stockholder Equity

Bonds Payable and Investments in Bonds

Chapter 1, 2, 3 Review.

CHAPTER TWENTY-FOUR CORPORATIONS: BONDS.

Financial Accounting Lesson 8: Liabilities and Present Value

Bonds and Long-Term Notes

Time Value of Money Concepts

The Cash Flow Statement

Principal Balance January 1

Presentation transcript:

Financial Accounting Chapter 9-10. Liabilities

Objectives Short-term debts (current liabilities) Long-term debts (e.g., bank loans and bonds)

Liabilities Defined and Classified Defined as probable debts or obligations of the entity that result from past transactions, which will be paid with assets or services. Maturity = 1 year or less Maturity > 1 year Current Liabilities Noncurrent Liabilities

Current Liabilities Account Also Definition Name Called Trade Obligations to pay for goods and Accounts Accounts services used in the basic operating Payable Payable activities of the business. Obligations related to expenses that Accrued Accrued have been incurred, but will not be Liabilities Expenses paid until the subsequent period. Notes Obligations due supported by a formal N/A Payable written contract. Obligations arising when cash is Deferred Unearned received prior to the related revenue Revenues Revenues being earned.

Long-term Liabilities Long term liabilities include all obligations that are not classified as current liabilities. Long-term notes payable and bonds Raising debt from private organization is called a note payable Publicly traded debt is called bonds Lease liabilities Operating leases vs capital leases

Bond Bond is a kind of debt that companies issue. People (investors) can buy bond in bond market as they can buy stocks in stock market. The bond holder receives a specific rate of interest shown in the bond for each period. When the bond becomes mature, the bond issuer (company) pays the principal to bond holder.

Present Value Concepts $1,000 invested today at 10%. In 5 years it will be worth $1,610.51. In 25 years it will be worth $10,834.71! Money can grow over time, because it can earn interest.

Present Value of a Single Amount The present value of a single amount is the worth to you today of receiving that amount some time in the future. Future Value Present Value Interest compounding periods Today Future

Present Values of an Annuity What is the value today of a series of payments to be received or paid out in the future? Payment 1 Payment 2 Payment 3 Present Value Interest compounding periods Today

Accounting Applications of Present Values On January 1, 2006, Starbucks bought some new delivery trucks. The company signed a note agreeing to pay $200,000 on December 31, 2007. The market interest rate for this note is 12%. Let’s prepare the journal entry to record the purchase.