Accounting-Bonds Payable, Notes Payable, Liabilities

Accounting-Bonds Payable, Notes Payable, Liabilities, Accounting for bonds and notes payable including the recording of bond discount and premium, present value calculations.

What you”ll learn:

• Interpret bond issuance strategies, discerning the implications on corporate accounts when bonds are issued at par, discount, or premium.
• Execute present value calculations using various methodologies, including algebraic formulas, actuarial tables, and Microsoft Excel functions.
• Ascertain and articulate the factors that influence the issue price of bonds, comprehending why it often diverges from its face value.
• Construct and analyze journal entries associated with bond retirement, understanding the differences when bonds are retired at maturity or before.
• Formulate detailed amortization tables for notes payable, thereby understanding the intricacies of interest calculation and payment structuring.
• Differentiate between current and long-term liabilities while compiling the liability section of balance sheets, taking into account their individual impacts on
• Identify and compare various types of bonds and their unique characteristics, equipping yourself with the knowledge to advise on bond selection.
• Apply different amortization methods such as straight-line and effective-interest for amortizing discounts and premiums on bonds, while evaluating their implica
• Distinguish between capital leases and operating leases, understanding the criteria for their classification and how they are accounted for in corporate account
• Develop adjusting entries that simplify data entry processes in an accounting system.
• Recognize and interpret various types of bonds and their individual characteristics.]

Description

Bonds payable, notes payable, and liabilities will introduce the concept of bonds from a corporate perspective and explain how to record the issuance of bonds and notes payable.

We will discuss the journal entry for issuing bonds at par value, at a discount, and at a premium.

The course will cover present value calculations in multiple formats. Present value calculations are often confusing to learners partially because the topic can be introduced in many ways. We will look at various ways to calculate present value and explain when we would use each. We will calculate present values using formulas and algebra, using present value tables, and using Microsoft Excel functions.

We will calculate the issue price of bonds and discuss why the issue price often differs from the par value or face amount of a bond.

The course will cover the journal entry related to the retirement of a bond, both at maturity and before maturity.

We will introduce notes payable, record journal entries related to taking out an installment note, and build amortization tables related to notes payable. Amortization tables help us record the proper transactions when making payments on a note payable and also provide us with a good idea of what interest is, how it is calculated, and why.

This course will discuss adjusting entries that can be used in an accounting system to help simplify the data entry process.

We will discuss how to create the liability section of the balance sheet breaking out current and long-term portions. We will discuss different techniques for recording the current portion and long-term portion of installment notes.

This course will discuss different types of bonds and bond characteristics.

We will demonstrate different methods for amortizing discounts and premiums including the straight-line method and effective method, discussing the pros and cons of each.

This course will describe the differences between a capital lease and operating lease and when a lease must be recorded as a capital lease.

We will also have a comprehensive problem designed to take a step back and think about the entire accounting cycle.

In addition to the instructional videos, this course will include downloadable

•    Downloadable PDF Files

•    Excel Practice Files

•    Multiple Choice Practice Questions

•    Short Calculation Practice Questions

•    Discussion Questions

The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material.

Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships.

Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple choice questions and discussing how to approach these questions.

Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple choice questions.

Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints.

Who will we be learning from?

You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.

You will be learning from somebody who is a:

•    CPA – Certified Public Accountant

•    CGMA – Chartered Global Management Accountant

•    Master of Science in Taxation

•    CPS – Certifies Post-Secondary Instructor

•    Curriculum Development Export

As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.

As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.

The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.

Content Includes:

·         How to record the issuance of bonds

·         How to record bonds issued at a premium

·         How to record bonds issued at a discount

·         Present value (PV) Calculations Using Formulas

·         Present value (PV) Calculations Using Tables

·         Present value (PV) Calculations Excel

·         Calculate Bond Issue Price

·         How to record bond retirement

·         Description of notes payable

·         How to create an amortization table

·         Adjusting entries for notes payable

·         How to record current and long-term liabilities

·         Types of bonds and bond characteristics

·         Calculate the effective amortization method

·         Explain what a capital lease and operating lease is

·         Comprehensive accounting problem