Kế toán, kiểm toán - Chapter 15: Recording and evaluating capital resource process activities: financing

Chapter 15Recording and Evaluating Capital Resource Process Activities: FinancingCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinThree Things to Remember Regarding Stockholders’ Equity Keep contributed capital (capital stock transactions) separate from earnings (retained earnings)Keep legal capital separate from additional paid-in capital.Treasury stock is a deduction from stockholders’ equity.15-*15-*What are the Stockholders’ Equity Accounts Used?Common stockNumber of common shares issued * amount representing legal capital (par or stated value, if applicable)Preferred stockNumber of preferred shares issued * amount representing legal capital (par or stated value, if applicable)15-*Stockholders’ Equity Accounts ContinuedTreasury stockNumber of shares repurchased * purchase price per share (contra equity account—debit balance)Paid-in capital in excess of par (stated value) common (or preferred)Number of shares issued * (assets received per share – legal capital per share)15-*Stockholders’ Equity Accounts ContinuedPaid-in capital from Treasury Stock TransactionsNumber of shares reissued * (assets received per share reissued – price paid when treasury stock was repurchased)Retained earningsPast net incomes minus past net losses minus past dividends declaredTwo Things to Remember Regarding Long-term Notes PayableRecord a note payable at its face value.Report a note payable at its carrying value (less discounts; plus premiums)15-*15-*What are the Events Associated with Periodic Payment Notes?Initial borrowingCash increases by present value of the note Installment note payable increases by the face value of the note Periodic paymentInterest expense increases by the interest incurred Installment note payable decreases by the principal paid Cash decreases by the amount of the periodic payment15-*Events Associated with Periodic Payment Notes ContinuedNOTE: Many installment notes are monthly payments, so the following may not be needed.Adjusting entry (if applicable)Interest expense increases by the interest incurred Interest payable increases by the interest incurred Subsequent entry (if applicable)Interest expense increases by the interest incurred Interest payable decreases by the obligation being met Installment note payable decreases by the principal payment Cash decreases by the amount of the periodic payment 15-*What are the Events Associated with Lump-sum Payment Notes?Initial borrowingCash increases by the present value of the note Discount on notes payable increases by the difference between the present value and the face value of the note Noninterest-bearing notes payable increases by the face value of the note Periodic paymentnone15-*Events Associated with Lump-sum Payment Notes ContinuedAdjusting entryInterest expense increases by the interest incurred Discount on notes payable decreases by the interest incurred RetirementNoninterest-bearing note payable decreases by the face value of the note Cash decreases by the face value of the note 15-*What are the Events Associated with Bonds?Initial borrowingCash increases by the present value of the bond issue Discount or premium on bond payable increases by the difference between the present value and the face value of the bond issue Bond payable increases by the face value of the bond issue 15-*Events Associated with Bonds ContinuedPeriodic paymentInterest expense increases by the interest incurred Discount or premium is reduced by the difference between the interest incurred (expense) and the interest paid Cash decreases by the amount of the interest paid 15-*Events Associated with Bonds ContinuedAdjusting entryInterest expense increases by the interest incurred Discount or premium is reduced by the difference between the interest incurred (expense) and the interest owed Interest payable increases by the amount of interest owed 15-*Events Associated with Bonds ContinuedSubsequent entryInterest expense increases by the interest incurred Interest payable decreases by the obligation being met Discount or premium is reduced by the difference between the interest incurred (expense) and the additional interest owed Cash decreases by the amount of the interest paid 15-*Events Associated with Bonds ContinuedRetirementBonds payable decreases by the face value of the bond issue Cash decreases by the face value of the bond issueWhat is the entry on 4-1-Y2?DRCR4-1Interest expense5,850.85Interest payable6,000.00Premium on bonds payable149.15 Cash12,000.00