微观经济学non-currentliabilities(编辑修改稿)

微观经济学non-currentliabilities(编辑修改稿)内容摘要：

e interest cost and remove debt from its statement of financial position • Entity must – Eliminate carrying amount of bond at redemption date – Record cash paid – Recognise gain or loss on redemption PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 23 Redeeming bonds before maturity continued Example – Journal entry to record redemption on Candlestick Ltd bonds before maturity at 103% of face value PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 2020 Jan 1 Bonds Payable 100 000 Unamortised Premium on Bonds 1 623 Loss on Redemption of Debentures 1 377 Cash 103 000 (To record redemption of bonds at 103) 25 Class Ad hoc Exercise 2 • Re the Candlestick Ltd. bonds were issued at discount of $7361 and the bonds are redeemed before maturity (end of the 4th year) at 103% of face value (based on straight line method) • Please plete journal entry for an early redemption at end of 4th year • ref. to ppt slide 23 • How about if the bonds were issued at face value and redeem at 103? Converting bonds into ordinary shares continued • In recording the conversion of bonds into mon stock the current market prices of the bonds and the stock are ignored • Instead, the carrying value of the bonds is transferred to paidin capital accounts • No gain or loss is recognised PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 26 Converting bonds into ordinary shares continued Example – Assume that on 1 July Andrews Associates converts $100 000 bonds sold at face value into 10 000 shares of $10 issue price ordinary shares – Both the bonds and the ordinary shares have a market value of $130 000 – Entry to record the conversion is: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 27 Jul 1 Bonds Payable 100 000 Share Capital 100 000 (To record bond conversion) ACCOUNTING FOR OTHER NONCURRENT LIABILITIES • Other mon types of noncurrent obligations are –Notes payable –Lease liabilities PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 28 LO4 Noncurrent notes payable • Similar to shortterm interestbearing notes payable except that the term of the note exceeds one year • Mortgage notes payable –Widely used by individuals to purchase homes and to acquire plant assets by many small and some large panies –Recorded initially at face value –Subsequent entries required for each instalment payment PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 29 Noncurrent notes payable continued • Example (Text P. 655 Fig ) – Entry to record mortgage loan – Entry to record first instalment payment PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 30 Dec 31 Cash 500 000 Mortgage Note Payable 500 000 (To record mortgage loan) Jun 30 Interest Expense 30 000 Mortgage Notes Payable 3 231 Cash 33 231 (To record semiannual payment on mortgage) Lease liabilities • A lease is a contractual arrangement between a lessor (owner of the property) and a lessee (renter of the property) • Grants the right to use specific property for a period of time in return for cash payments PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 31 LO5 Lease liabilities continued Operating leases • Intent is temporary use of the property by the lessee, while the lessor continues to own the property • Lease (or rental) payments are recorded as an expense by the lessee and as revenue by the lessor • Example PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 32 Car Rental Expense 275 Cash 275 (To record payment of lease rental charge) Lease liabilities continued Finance leases • Contract transfers substantially all benefits and risks of ownership to lessee • Present value of minimum lease payments are capitalised on the statement of financial position • When a lease is deemed to be a finance lease, it requires different accounting treatment PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 33 Lease liabilities contin。