財務會計概念與應用英文版lectu(3)-閱讀頁
2025-01-21 21:28本頁面
【正文】 . . . . . . . . . . . . . . . 100,000 Make semiannual interest payment: Interest Expense . . . . . . . . . . . . . . . . . . . . . 5,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Retirement of bond: Bonds Payable . . . . . . . . . . . . . . . . . . . . . . .100,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 20 Early Retirement of Bonds ? Bonds are sometimes retired before maturity. – The difference between the face value and the price paid to retire the bonds is recognized as a gain or loss. Retirement of Sayer Co. bond at 105: Bonds Payable . . . . . . . . . . . . . . . . . . . . . . .100,000 Loss on Bond Retirement . . . . . . . . . . . . . . 5,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000 21 DebtRelated Financial Ratios ? Debt ratio – Represents the amount of assets financed through debt. ? Debttoequity ratio – The number of dollars of debt for every dollar invested by stockholders. Total Liabilities Total Assets Total Liabilities Total Stockholders’ Equity 22 Times Interest Earned ? Times Interest Earned Ratio – The ratio of the ine that is available for interest payments. – Measures how much a cushion has in making its interest payments. – The higher the better. Earnings Before Interest and Taxes Interest Expense 23 Bonds Issued at a Discount or Premium Using the Sayer Co. examples, ? Bonds issued at a discount: ? Bonds issued at a premium: Issuance of bonds: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,640 Discount on Bonds . . . . . . . . . . . . . . . . . . . 7,360 Bonds Payable . . . . . . . . . . . . . . . . . . . 100,000 Issuance of bonds: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,114 Premium on Bonds. . . . . . . . . . . . . . . . 8,114 Bonds Payable . . . . . . . . . . . . . . . . . . . 100,000 24 StraightLine Amortization ? The discount or premium needs to be amortized over the life of the bond so the value of the bond is equal to the face value at maturity. ? Straightline amortization – Divide the discount or premium by the number of interest periods and recognize that amount as extra interest expense (for discounts) or less interest expense (for premiums). 25 StraightLine Amortization ? Bonds issued at a discount: ? The same entry would be made for each interest payment. ? A similar entry would be made to amortize a premium, but the premium would be debited and interest expense would be reduced. Discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,360 Number of semiannual periods . . . . . . . . . .
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