1. Modul ke: Fakultas Program Studi Pengantar Akuntansi II Review Stock, Bond and Partnership Reff. Warren Reeve and Fees. Nurul Hidayah, SE,Ak,MSi Hari Setiyawati, SE,Ak,MSi 14 FEB Akuntansi

2. Treasury stock is stock that: 1. has been issued as fully paid. 2.has been reacquired by the corporation. 3.has not been canceled or reissued. A commonly used method of accounting for treasury stock is the cost method.

3. Example : On January 5, a firm purchased 1,000 shares of treasury stock (common stock, $25 par) at $45 per share. Jan.5Treasury Stock 45 000 00 Purchased 1,000 shares of treasury stock at $45. Cash45 000 00

4. Akuntansi untuk Deviden Kas First is the date of declaration. Assume that on December 1, Hiber Corporation declares a $42,500 dividend.

5. Dec.1Cash Dividends 42 500 00 Declared cash dividend. Cash Dividend Payable42 500 00 Jurnal saat pengumuman :

6. The second important date is the date of record. For Hiber Corporation this would be December 11.

7. Tanggal saat dilakukan pencatatan On this date, ownership of shares determines who receives the dividend. No entry is required.

8. The third important date is the date of payment. On January 2, Hiber issues dividend checks. Tanggal sat pembayaran : 2

9. Jan.2Cash Dividends Payable 42 500 00 Paid cash dividends. Cash 42 500 00 Tanggal Pembayaran :

10. Akuntansi untuk deviden saham A distribution of dividends to stockholders in the form of the firm’s own shares is called a stock dividend.

11. Stock dividends transfer pro rata shares of stock to stockholders. Assume Hendrix Corporation issues a 5% stock dividend on common stock, $20 par, 2,000,000 shares issued.

12. Contoh transaksi dev. saham Dec.15Stock Dividends 3,100 000 00 Declared stock dividend. Hendrix Corporation, December 15 (before dividend) Common Stock, $20 par$40,000,000 Paid-in Capital in Excess of Par--Common Stock9,000,000 Retained Earnings26,600,000 Stock Dividends Distributable2,000000 00 Paid-in Capital in Excess of Par—Common Stock1,100000 00

13. Jan. 10Stock Dividends Distributable 2,000 000 00 Issued stocks for the stock dividend. Common Stock2,000000 00 On January 10, Hendix Corporation issues the stock. This action increases the number of shares outstanding by 100,000.

14. Hendrix Corporation, December 15 (before dividend) Common Stock, $20 par$40,000,000 Paid-in Capital in Excess of Par--Common Stock9,000,000 Retained Earnings 26,600,000 $75,600,000 Hendrix Corporation, January 10 (after dividend) Common Stock, $20 par$42,000,000 Paid-in Capital in Excess of Par--Common Stock10,100,000 Retained Earnings 23,500,000 $75,600,000

15. Analisis terhadap lap.keu Dividend Yield 20042003 Dividends per share of common$ 0.80$ 0.60 Market price per share of common$20.50$13.50 Dividends per Share of Common Stock Market Price per Share of Common Stock Dividend Yield $.60 $13.50 Dividend Yield, 2006 = 4.4% Dividend Yield, 2007 $.80 $20.50 = 3.9% Use:To indicate the rate of return to common stockholders in terms of dividends

16. Paid-in capital: Preferred 10% stock, $50 par, cumulative (2,000 shares authorized and issued) $100,000 Excess of issue price over par 10,000$ 110,000 Common stock, $20 par (50,000 shares authorized, 45,000 issued)$900,000 Excess of issue price over par 190,0001,090,000 From sale of treasury stock 2,000 Total paid-in capital$1,202,000 Retained earnings 350,000 Total$1,552,000 Deduct treasury stock (600 shares at cost) 27,000 Total stockholders’ equity$1,525,000 Stockholders’ Equity 61

17. Dua cra untuk melakukan pendanaan : Stockholders’ Equity Assets Liabilities pendanaan dg menjual saham: Stockholders pendanaan dg hutang : Bondholders

18. Bondholders Bonds (debt)—Interest payments to bondholders are an expense that reduces taxable income. ) Stock (equity)—Dividend payments are made from after tax net income and retained earnings. Earnings per share on common stock can often be increased by issuing bonds rather than additional stock. Stockholders Two Methods of Long-Term Financing

19. Alternatif pendanaan dg konsekuensinya : Plan 1Plan 2Plan 3 12 % bonds——$2,000,000 Preferred 9% stock, $50 par—$2,000,0001,000,000 Common stock, $10 par$4,000,0002,000,0001,000,000 Total$4,000,000$4,000,000$4,000,000 Earnings before interest and income tax$ 800,000$ 800,000$ 800,000 Deduct interest on bonds——240,000 Income before income tax$ 800,000$ 800,000$ 560,000 Deduct income tax320,000 320,000224,000 Net income$ 480,000$ 480,000$ 336,000 Dividends on preferred stock—180,00090,000 Available for dividends$ 480,000$ 300,000$ 246,000 Shares of common stock ÷400,000 ÷200,000 ÷100,000 Earnings per share$1.20$1.50$2.46

20. Jika laba yg di peroleh : $440,000 Plan 1Plan 2Plan 3 12 % bonds——$2,000,000 Preferred 9% stock, $50 par—$2,000,0001,000,000 Common stock, $10 par$4,000,0002,000,0001,000,000 Total$4,000,000$4,000,000$4,000,000 Earnings before interest and income tax$ 440,000$ 440,000$ 440,000 Deduct interest on bonds—— 240,000 Income before income tax$ 440,000$ 440,000$ 200,000 Deduct income tax176,000176,00080,000 Net income$ 264,000$ 264,000$ 120,000 Dividends on preferred stock—180,00090,000 Available for dividends$ 264,000$ 84,000$ 30,000 Shares of common stock÷400,000÷200,000 ÷100,000 Earnings per share$0.66$0.42$0.30

21. Karakteristik Hutang Obligasi : A bond contract is called a bond indenture or trust indenture. Long-term debt—repayable 10, 20, or 30 years after date of issuance. Issued in face (principal) amounts of $1,000, or multiples of $1,000. Contract interest rate is fixed for term (life) of the bond. Face amount of bond repayable at maturity date.

22. 4 When all bonds of an issue mature at the same time, they are called term bonds. If the maturity dates are spread over several dates, they are called serial bonds. 4 Bonds that may be exchanged for other securities are called convertible bonds. 4 Bonds that a corporation reserves the right to redeem before maturity are callable bonds. 4 Bonds issued on the basis of the general credit of the corporations are debenture bonds.

23. Present-Value untuk hutang obligasi : Present-Value untuk hutang obligasi : MARKET RATE = CONTRACT RATE Sell price of bond = $1,000 $1,000 10% payable annually

24. MARKET RATE > CONTRACT RATE Sell price of bond < $1,000 – Discount $1,000 10% payable annually

25. The Present-Value Concept and Bonds Payable MARKET < CONTRACT RATE Sell price of bond > $1,000 + Premium $1,000 10% payable annually

26. A $1,000, 10% bond is purchased. It pays interest annually and will mature in two years. Today End of Year 1 End of Year 2 Interest payment $100 Interest payment $100 $90.91$100 x 0.90909 $1,000 10% payable annually $82.65 $100 x 0.82645 $1,000 x 0.82645 $826.45 $1,000.00 (rounded)

27. Present value of face value of $1,000 due in 2 years at 10% compounded annually: $1,000 x 0.82645$ 826.45 Present value of 2 annual interest payments of 10% compounded annually: $100 x 1.73554 (PV of annuity of $1 for 2 years at 10%) 173.55 Total present value of bonds$1,000.00

28. Akuntansi untuk hutang obligasi On January 1, 2005, a corporation issues for cash $100,000 of 12%, five-year bonds; interest payable semiannually. The market rate of interest is 12%. Present value of face amount of $100,000 due in 5 years at 12% compounded annually: $100,000 x 0.55840$ 55,840 Present value of 10 interest payments of $6,000 compounded semiannually: $6,000 x 7.3609 (PV of annuity of $1 for 10 periods at 6%) 44,160 Total present value of bonds$100,000

29. On January 1, 2005, a corporation issues for cash $100,000 of 12%, five-year bonds; interest payable semiannual. The market rate of interest is 12%. Jan. 1Cash100 000 00 Issued $100,000 bonds payable at face amount. Bonds Payable 100 000 00 2005

30. Accounting for Bonds Payable On June 30, an interest payment of $6,000 is made ($100,000 x.12 x 6/12). June 30Interest Expense6 000 00 Paid six months’ interest on bonds. Cash 6 000 00 Bonds Issued at Face Amount

31. Alternative Forms of Business Entities Disadvantages Limited life Unlimited liability Co-ownership of partnership property Mutual agency Joe and Marty’s A partnership is an association of two or more individuals.

32. Alternative Forms of Business Entities An important right of partners is to participate in the income of the partnership.

33. Alternative Forms of Business Entities Each partner must report their share of partnership income on their personal tax returns.

34. Alternative Forms of Business Entities A partnership is created by a contract, known as the partnership agreement or articles of partnership.

35. Alternative Forms of Business Entities A variant of the regular partnership is a limited partnership. This form of partnership allows partners that are not involved in the operations of the partnership to retain limited liability.

36. Forming a Partnership Forming a Partnership Joseph Stevens and Earl Foster agree to combine their hardware businesses in a partnership. They agree that the partnership is to assume the liabilities of the separate businesses. Apr.1Cash7 200 00 Accounts Receivable16 300 00 Merchandise Inventory28 700 00 Store Equipment5 400 00 Office Equipment1 500 00 Allowance for Doubtful Accounts1 500 00 Accounts Payable2 600 00 Joseph Stevens, Capital55 000 00 Stevens’ Transfer of Assets, Liability, and Equity

37. Pembentukan Partnership Pembentukan Partnership A similar entry would be made for the assets, liabilities, and equity of Earl Foster.

38. Assume that instead of forming a partnership, the two men formed a limited liability corporation. Apr.1Cash7 200 00 Accounts Receivable16 300 00 Merchandise Inventory28 700 00 Store Equipment5 400 00 Office Equipment1 500 00 Allowance for Doubtful Accounts1 500 00 Accounts Payable2 600 00 Joseph Stevens, Member Equity55 000 00 Stevens’ Transfer of Assets, Liability, and Equity

39. Services of Partners The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an annual salary allowance of $30,000 and Mills is to receive $24,000. Any net income is to be divided equally. The firm had a net income of $75,000. J. Stone C. Mills Total Salary allowance$30,000$24,000$54,000 Remaining income10,50010,50021,000 Division of net income$40,500$34,500$75,000

40. Services of Partners Dec.31Income Summary75 000 00 Jennifer Stone, Capital40 500 00 Crystal Mills, Capital 34 500 00

41. LLC Alternative Dec.31Income Summary75 000 00 Jennifer Stone, Member Equity40 500 00 Crystal Mills, Member Equity 34 500 00

42. Services of Partners and Investments The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an annual salary allowance of $30,000 and Mills is to receive $24,000. Interest of 12% is provided on each partner’s capital balance on January 1. Any net income is to be divided equally. The firm had a net income of $75,000.

43. Pembagian laba rugi Pembagian laba rugi Services of Partners and Investments J. Stone C. Mills Total Salary allowance$30,000$24,000$54,000 Interest allowance9,6007,20016,800 Division of net income$41,700$33,300$75,000 $80,000 x 12% $60,000 x 12% Remaining income2,1002,1004,200

44. Services of Partners Dec.31Income Summary75 000 00 Jennifer Stone, Capital41 700 00 Crystal Mills, Capital 33 300 00

45. LLC Alternative Dec.31Income Summary75 000 00 Jennifer Stone, Member Equity41 700 00 Crystal Mills, Member Equity 33 300 00

46. Assume the same facts as before except that the net income is only $50,000. J. Stone C. Mills Total Salary allowance$30,000$24,000$54,000 Interest allowance 9,600 7,200 16,800 Total$39,600$31,200$70,800 Division of net income$29,200$20,800$50,000 Deduct excess equally10,40010,40020,800

47. Munculnya partner baru : 1.Purchasing an interest from one or more of the current partners. 2.Contributing assets to the partnership. A person may be admitted to a partnership only with the consent of all partners by:

48. Partnership Dissolution Purchasing an Interest in a Partnership Partners Tom Andrews and Nathan Bell have capital balances of $50,000 each. On June 1, each sells one-fifth of his equity to Joe Canter for $10,000 in cash.

49. Partnership Dissolution Purchasing an Interest in a Partnership June1Tom Andrews, Capital10 000 00 Nathan Bell, Capital10 000 00 Joe Canter, Capital20 000 00 For a LLC, members’ equity accounts would have been used rather than capital accounts.

50. Partnership Dissolution Contributing Assets to a Partnership Partners Donald Lewis and Gerald Morton have capital balances of $35,000 and $25,000, respectively. On June 1, Sharon Nelson joins the partnership by permission and makes an investment of $20,000 cash.

51. Partnership Dissolution Contributing Assets to a Partnership June1Cash20 000 00 Sharon Nelson, Capital20 000 00 For a LLC, Sharon Nelson, Member Equity would have been credited.

52. Contoh : Partners Donald Lewis and Gerald Morton have capital balances of $35,000 and $25,000, respectively. The balance in Merchandise Inventory is $14,000 and the current replacement value is $17,000. The partners share net income equally.

53. Partnership Dissolution June1Merchandise Inventory3 000 00 Donald Lewis, Capital1 500 00 Gerald Morton, Capital1 500 00 Because the LLC alternative follows a pattern of replacing “Capital” with “Member Equity,” the LLC entry will not be shown again. Revaluation of Assets

54. Partnership Dissolution Partner Bonuses On March 1, the partnership of Marsha Jenkins and Helen Kramer admit Alex Diaz as a new partner. The assets of the old partnership are adjusted to a fair market values and the resulting capital balances for Jenkins and Kramer are $30,000 and $24,000, respectively.

55. Partnership Dissolution Partner Bonuses Jenkins and Kramer agree to admit Diaz as a partner for $31,000. In return, Diaz will receive a one-third equity in the partnership and will share income and losses equally with Jenkins and Kramer.

56. Partnership Dissolution Partner Bonuses from New Partner Equity of Jenkins$20,000 Equity of Kramer24,000 Diaz’s Contribution 31,000 Total equity after admitting Diaz$75,000 Diaz’s interest (1/3 x $75,000)$25,000 Diaz’s contribution$31,000 Diaz’s equity after admission 25,000 Bonus paid to Jenkins and Kramer$ 6,000

57. Terima Kasih Hari Setiyawati dan Nurul H