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Accounting-Bonds Payable, Notes Payable, Liabilities

Name: Accounting-Bonds Payable, Notes Payable, Liabilities
Rating: 4.6 (205 reviews)

Mastering Corporate Liabilities: An In-depth Guide to Bonds, Notes Payable, and Other Financial Obligations

Highest Rated

Created byRobert (Bob) Steele

Last updated 11/2024

English

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.

Course content

15 sections • 145 lectures • 15h 50m total length

Introduction8:10
Explore bonds and notes payable as liabilities, covering issuance, premiums and discounts, amortization, present value, retirement, and related financial statement impacts, with practical exercises and problem solving.
PDF - 10 Bond & Note Payable Introduction0:08
A downloadable pedia file accompanies the lecture, serving as a supplement to the instructional video. Use this resource to reinforce an introduction to bonds payable, notes payable, and liabilities.
10 Bonds & Notes Payable Introduction9:34
Understand how bonds and notes payable finance a company, and compare bonds to stock and notes payable, noting ownership, voting rights, time value of money, and tax-deductible interest.
Discussion Question
Accounting Comic Break0:14
Dive into bonds payable, notes payable, and liabilities through an engaging accounting comic break that clarifies concepts and reinforces practical understanding.

2 Bonds Market Rate vs Contract Rate0:22
Explain the market rate versus contract rate and how they interact in bond issuance and interest recording. Demonstrate the amortization of bond discounts and premiums over the life of bonds.
PDF - 20 Bonds Issued at Par0:08
Access a downloadable pedia file that supplements the instructional video on bonds issued at par, enhancing understanding of liabilities in the accounting course.
20 Bond Issued at Par5:36
Learn how issuing bonds at par affects journal entries, differences from notes, and how market rate vs bond rate determines whether premium or discount applies.
PDF - 25 Bond Market Price vs Contract Rate0:08
Access the downloadable pedia file to supplement your learning as you watch the instructional video on bond market price vs contract rate.
25 Bonds Market Rate vs Contract Rate7:32
Explore how bond contract rate and market rate drive premiums or discounts, and how issuing at face value, premium, or discount affects interest and later amortization.
Excel Download0:05
Worksheet - 20 Bond Issued at Par5:32
Learn how to record a bond issued at par, with a cash receipt of 240,000 and a bonds payable entry of 240,000, noting no premium or discount.
Excel Download0:05
Download the Excel worksheet included in the next presentation to access a practical, ready-to-use tool for reviewing the material.
Worksheet - 25 Bond Interest Journal Entry4:51
Record the semiannual bond interest entry at 8% on a 240,000 face amount with no discount or premium, cash paid 9,600 and interest expense 9,600.
20 Discussion Question - Long Term Liabilities

3 Bonds Issued at Premium1:02
Explore bonds issued at a premium, including initial issuance journal entries, premium amortization over the bond's life, and interest recording, supported by instructional videos and downloadable Excel worksheets.
PDF - 50 Bond Issued at Premium0:08
Explore how a downloadable pedia file complements the instructional video for understanding bonds payable, notes payable, and liabilities, with a focus on a pdf about 50 bonds issued at premium.
50 Bond Issued at Premium7:19
Explain issuing a bond at a premium to raise cash above face value and how the premium is amortized against interest expense, influenced by market rate versus contract rate.
Excel Download0:05
Download the Excel worksheet for the next presentation to deepen your understanding of bonds payable, notes payable, and liabilities.
Worksheet - 50 Bond Issue at Premium9:07
Record a bond issued at a premium, with cash 270 and bonds payable 240, creating a 30 premium; amortize the premium over 15 years with semiannual interest and market-rate considerations.
PDF - 60 Amortization Premium & Recording Interest0:08
Access a downloadable pedia file that supplements the instructional video on amortization premium and recording interest for bonds payable and liabilities.
60 Premium Amortization & Interest12:30
Demonstrate initial bond recognition at 270 on a 240 face amount with a 30 premium, and illustrate how premium amortization affects carrying value through semiannual straight-line entries.
Excel Download0:05
Download an excel worksheet featured in the next presentation to practice accounting for liabilities such as bonds payable and notes payable.
Worksheet - 55 Bond Premium and Interest Journal Entry16:00
Learn how to record bond premium amortization and bond interest with a semiannual journal entry, using straight-line amortization on a bond issued at 270,000 with a 240,000 face amount.
10 Multiple Choice Question – Long Term Liabilities7:10
Explore long term liabilities through multiple-choice questions on bonds, notes payable, and features like callable, serial, and convertible bonds, plus how amortizing a bond discount allocates interest expense.
30 Discussion Question - Long Term Liabilities
Accounting Comic Break0:14

4 Bonds Issued at Discount0:54
PDF - 40 Amortizing Discount & Recording Interest0:08
Use the downloadable pedia file as a supplement to the instructional video to reinforce concepts on amortizing discount and recording interest for bonds and notes payable.
PDF - 30 Bonds Issued at Discount0:08
Access a downloadable pedia file to supplement the instructional video on 30 bonds issued at discount.
40 Issue bond at a discount%2C calculate%2C and record interest payment26:14
Explain how to issue a bond at a discount, record cash and liabilities, calculate semiannual interest, and amortize the discount using a straight-line method.
Excel Download0:05
Download the Excel worksheet that accompanies this presentation on bonds payable, notes payable, and liabilities.
Worksheet - 30 Bond Issued at Discount9:12
Explain recording a bond issued at a discount: cash received, bonds payable, and the discount on bonds payable, with face amount 240,000 and issue price 198,484.
Excel Download0:05
Download the Excel worksheet the next presentation will include. Access the Excel worksheet once the next presentation includes it.
Worksheet - 35 Bond Discount & Interest18:04
Compute and record the amortization of a bond discount and the related interest over semiannual periods, posting to the general journal and worksheet using straight-line or effective methods.
Excel Download0:05
The upcoming presentation offers a downloadable Excel worksheet for liabilities and related accounts, including bonds payable and notes payable.
Worksheet - 1400.10 Record issuance of bond at a discount amortize straight15:33
Issue bonds at a discount and amortize the discount via straight-line method, recording semiannual interest and related journal entries, and posting to the trial balance.
Worksheet - 1400.20 Record issuance of bond at a discount amortize straight l15:48
Worksheet - 1400.40 Record issuance of bond at a premium amortize straight15:31
Record a bond issued at a premium, cash 270 and face 240, amortize the 30 premium straight-line, posting journal entries, semiannual interest, and trial balance.
Worksheet - 1400.50 Record issuance of bond at a premium amortize straigh13:50
20 Multiple Choice Question – Long Term Liabilities4:27
Explore long term liabilities by examining bond types, serial bonds and secured bonds, and notes payable considerations.
40 Discussion Question - Long Term Liabilities
Accounting Comic Break0:14
Explore bonds payable, notes payable, and liabilities through an accounting comic break that clarifies essential concepts for clear financial reporting.

5 Present Value Bond Price2:36
Explore present value concepts and time value of money, focusing on bonds and bond prices, PV of a single payment, PV of an annuity, and using tables, calculators, and Excel.
PDF - 70 Bond Present Value Formula0:08
Download a pedia file to supplement the instructional video, reinforcing the bond present value formula within liabilities topics.
70 Bonds Present Value Formulas13:32
Explore present value formulas for bonds by analyzing the face amount and semiannual interest payments, and how market rate and stated rate affect bond valuation.
Excel Download0:05
Access a downloadable Excel worksheet in the next presentation to review liabilities concepts and download the file for offline reference.
Worksheet - 70 Bond Present Value Formula15:00
Compute a bond's present value by separating cash flows into a lump-sum and an annuity, using the face value, market rate, and semiannual payments.
PDF - 80 Bond Present Value Tables0:08
Use the downloadable pedia file to supplement the instructional video on bond present value tables for enhanced study of liabilities.
80 Bond Present Value Tables9:22
Compute a bond price with present value tables by valuing the face amount and semiannual annuity at the market rate, showing carrying value and discount.
Excel Download0:05
Download an Excel worksheet to practice accounting for liabilities, including bonds payable and notes payable.
Worksheet - 80 Bond Present Value Tables11:02
Learn to compute bond present value using present value tables, including present value of 1 and the annuity, for a semiannual two-year bond with 8% coupon and 10% market rate.
PDF - 90 Bond Present Excel Formulas0:08
Access a downloadable pedia file that supplements the instructional video, providing a pdf with 90 bond present excel formulas for bonds payable and liabilities.
90 Bond Price Excel Formula12:32
learn how to price a bond using present value in Excel, separating the face value and interest annuity over four semiannual periods at a 10 percent market rate.
Excel Download0:05
The next presentation will include an excel worksheet that we can download. We will download the excel worksheet.
Worksheet - 90 Bond Present Value Excel20:03
Calculate bond cash flows and present value in Excel, using both lump-sum and annuity PV methods for a semiannual bond with face value $100,000, 8% coupon, and 10% market rate.
30 Multiple Choice Question – Long Term Liabilities6:57
Explore multiple-choice questions on bonds, notes payable, and long-term liabilities, covering carrying value at maturity, face amount, and discount or premium amortization, and evaluate the disadvantage that bonds pay interest.
50 Discussion Question - Long Term Liabilities
Accounting Comic Break0:14
Navigate bonds payable, notes payable, and liabilities through an engaging accounting comic break that clarifies concepts, terminology, and practical implications for financial reporting.

6 Bond Retirement0:54
PDF - 100 Bond Retirement0:08
Offer a downloadable pedia file that supplements the instructional video on bond retirement and liabilities.
100 Bond Retirement8:42
Explain the journal entries for retiring bonds at maturity or early call, showing cash, bond payable, and discount or premium, and recognize any gain or loss.
Excel Download0:05
download an excel worksheet for the upcoming presentation to reinforce liabilities concepts, including bonds payable and notes payable, through hands-on practice.
Worksheet - 100 Bond Retirement11:37
Retire bonds by recording the final journal entry, eliminate bond payable and related discount or premium, and recognize any cash paid and gain or loss using a worksheet.
40 Multiple Choice Question – Long Term Liabilities7:02
Compare capital versus operating leases, recognize fixed assets, and apply depreciation within long-term liabilities. Learn about callable bonds and serial bonds, plus notes payable concepts.
60 Discussion Question - Long Term Liabilities
Accounting Comic Break0:14
Explore bonds payable, notes payable, and other liabilities through an engaging accounting comic break that clarifies key liability concepts.

7 Notes Payable Introduction0:49
Explore notes payable as bank loans, record the initial loan, and practice with downloadable PDA files and Excel worksheets featuring step-by-step guidance and answer tabs.
PDF - 110 Notes Payable Introduction0:08
Access a downloadable pedia file to supplement the instructional video for the notes payable introduction within the liabilities course.
110 Notes Payable Introduction5:18
Introduce notes payable as a bank loan financing option and contrast it with bonds payable, explaining principal and interest, installment vs. lump-sum repayment, and amortization.
PDF - 120 Installment Note Journal Entry0:08
Access a downloadable supplemental PDF for the 120 installment note journal entry, supporting the instructional video on notes payable and liabilities.
120 Note Payable Journal Entry3:46
Record the initial journal entry for a bank note payable, increasing cash and notes payable, and explain why interest is incurred later and does not affect net income.
Excel Download0:05
Download the Excel worksheet that will be included in the next presentation; we can download the Excel worksheet.
Worksheet - 120 Installment Note Initial Journal Entry3:32
Record the initial installment note by debiting cash for 100,000 and crediting notes payable for 100,000, recognizing a liability with no revenue impact for now.
50 Multiple Choice Question – Long Term Liabilities4:50
Explore long-term liabilities through focused multiple-choice questions on bonds and notes payable, including tax deductible interest, market vs contract rates, and par value concepts.
70 Discussion Question - Long Term Liabilities
Accounting Comic Break0:13
Explore bonds payable and notes payable within liabilities through an engaging accounting comic break that clarifies key concepts for practical understanding.

8 Amortization Schedule Notes Payable1:12
Explore how to construct an amortization schedule and tables for notes payable and installment loans, and record the journal entries for loan payments, with practice Excel worksheets and instructional videos.
PDF - 130 Notes Payable Amortization0:08
Access a downloadable pedia file to supplement the instructional video on notes payable amortization within the liabilities course.
130 Amortization Schedule11:51
Explore building an amortization schedule for a $100,000 note payable at 9 percent over 36 months by allocating each payment to interest and principal.
PDF - 140 Notes Payable Interest Payments0:08
Access the downloadable pedia file as a supplement to the instructional video on notes payable interest payments.
140 Notes Payable Payments Journal Entry7:11
Record a notes payable installment payment using an amortization table to split each payment into interest and principal, posting to the general journal, cash, interest expense, and notes payable.
Excel Download0:05
Discover how to download the Excel worksheet from the upcoming presentation to reinforce learning on bonds payable, notes payable, and liabilities.
Worksheet - 130 Note Payable Amortization14:45
Calculate note payable installments using an amortization table and annuity payments. Record monthly interest and principal reductions through journal entries.
Excel Download0:05
Download an excel worksheet from the next presentation to reinforce liabilities concepts through hands-on practice.
Worksheet - 140 Note payable interest payments9:55
Record installment note payments by separating interest and principal with an amortization table, then post to the general journal and trial balance, updating cash and note payable.
60 Multiple Choice Question – Long Term Liabilities5:47
Explore long term liabilities by answering multiple-choice questions on promissory notes, installment notes, bonds, and notes payable, including premium pricing when contract rate exceeds market rate.
80 Discussion Question - Long Term Liabilities
Accounting Comic Break0:14

9 Notes Payable Adjusting Entries1:24
Explore notes payable adjusting entries that align end-of-period data with accrual financial statements, and plan to streamline data input using a two-tab Excel workbook and instructional videos.
PDF - 150 Adjusting Entry - Notes Payable0:08
Access a downloadable pedia file to supplement the instructional video on notes payable adjusting entries, enhancing understanding of liabilities and related concepts.
150 Notes Payable Adjusting Entry9:49
Adjust notes payable at period end to align the balance with the amortization table and interest expense. Plan loan payments for simple data input and separate adjusting from routine entries.
Excel Download0:05
Download an Excel worksheet from the next presentation to reinforce liabilities concepts in accounting-bonds payable, notes payable, and liabilities.
Worksheet - 150 Note Payable Adjusting Entry 17:10
Enter an end-of-period adjusting entry for notes payable and interest using the amortization table, posted in the general journal and worksheet to align the trial balance.
Excel Download0:05
Worksheet - 160 Note Payable Adjusting Entry 26:26
Enter adjusting entries for notes payable and interest expense to align with the amortization schedule, posting from the general journal to the worksheet and balancing net income.
70 Multiple Choice Question – Long Term Liabilities6:40
Explore how bonds sell at a discount when the contract rate is lower than the market rate and how the bond discount is a contra liability.
90 Discussion Question - Long Term Liabilities
Accounting Comic Break0:13
Explore the fundamentals of liabilities by examining bonds payable and notes payable through an engaging accounting comic break.

10 Financial Statements Long Term Liabilities1:21
Explore long-term liabilities, focusing on short-term vs long-term portions of notes payable, and learn how to structure the chart of accounts and trial balance to automatically generate financial statements.
PDF - 170 Liabilities - Current vs Non Current0:08
Explore current vs non-current liabilities and use the downloadable pedia file as a supplement to the instructional video.
170 Notes Payable Current vs. Non Current18:10
Explore how to report notes payable on the balance sheet by splitting the current portion from the long-term portion, using amortization schedules, trial balances, and journal entries.
Excel Download0:05
The next presentation will include a downloadable excel worksheet for hands-on practice in the accounting liabilities course.
Worksheet - 170 FS St LT One Loan 1 TB Account9:15
demonstrates breaking out the short-term and long-term portions of a loan on the balance sheet, using an amortization table and trial balance to prepare accurate financial statements.
Excel Download0:05
Download an Excel worksheet in the next presentation to practice liabilities concepts for the accounting course.
Worksheet - 180 FS St LT Loan 1 loan 2 TB Accounts7:52
Learn how to present a balance sheet with short-term and long-term portions of notes payable, using an amortization table, adjusting entries, and a trial balance to generate accurate financial statements.
Excel Download0:05
Worksheet - 190 FS ST LT 2 loans 1 TB account7:45
Excel Download0:05
Download an excel worksheet to practice accounting for bonds payable, notes payable, and liabilities, enhancing your understanding through hands-on review.
Worksheet - 200 FS ST LT 2 Loans 1 ST 1 LT TB account9:14
Break down notes payable and loans payable into short term and long term portions, using journal entries, trial balance, and amortization tables to prepare accurate financial statements.
Excel Download0:05
Download an Excel worksheet in the upcoming presentation to practice bonds payable and notes payable concepts within liabilities.
Worksheet - 210 FS ST LT 2 Loans 2 Loan Account TB7:43
Break out two loans into short-term and long-term portions on the trial balance and balance sheet, using amortization tables to ensure assets equal liabilities plus equity.
Excel Download0:05
Download an Excel worksheet to accompany the lecture on bonds payable, notes payable, and liabilities.
Worksheet - 220 FS 2 Loans 4 Accounts TB11:05
Learn to separate current and long-term notes payable on the balance sheet, tie trial balance data to amortization tables, and record journal entries for short-term and long-term loan portions.
80 Multiple Choice Question – Long Term Liabilities7:11
Explains long-term liabilities through bonds and notes payable, covering discounts, contract rate versus market rate, and the effective interest amortization method using a constant rate.
100 Discussion Question - Long Term Liabilities
Accounting Comic Break0:14
Explore the essentials of bonds payable, notes payable, and liabilities through a lighthearted accounting comic break that clarifies key concepts.

Requirements

Basic Understanding of Accounting Principles: Familiarity with foundational accounting concepts and terminologies will be beneficial as we'll be building upon these principles.
Motivated Learner: More than any technical skill, what's truly needed is a keen interest in learning more about corporate accounting, bonds payable, and notes payable.

Description

Welcome to this course, where we delve deep into the intricacies of corporate financial obligations. This comprehensive course introduces you to the world of bonds and notes payable from a corporate perspective, providing you with a clear understanding of the recording and issuance of such liabilities.

We kick-start our journey by exploring how to record the issuance of bonds, whether they're issued at par value, a discount, or a premium. Discover how present value calculations, often a challenging area for many learners, can be mastered through multiple methods. We'll guide you through calculations using formulas and algebra, present value tables, and the convenient functionalities of Microsoft Excel.

Our in-depth coverage continues as we explore how to calculate the issue price of bonds and understand why it often differs from the par or face value. We'll also examine the journal entries related to the retirement of a bond, both at its maturity and before.

Next, we'll delve into the concept of notes payable, including how to record journal entries for installment notes and construct relevant amortization tables. These tools will provide you with a robust understanding of what interest is, how it is calculated, and why it matters.

This course is designed not just to teach, but also to simplify. We'll show you how to use adjusting entries in an accounting system to streamline data entry and demonstrate how to create the liability section of the balance sheet, distinguishing between current and long-term portions.

Our exploration of the world of bonds will reveal various types of bonds and their characteristics. We'll demonstrate different methods for amortizing discounts and premiums, considering the pros and cons of each approach. The course also distinguishes between capital leases and operating leases, clarifying when a lease must be recorded as a capital lease.

The course is interspersed with practical tools including PDF files, Excel practice files, multiple-choice practice questions, short calculation practice questions, and thought-provoking discussion questions. These resources facilitate an interactive learning environment, allowing you to apply your new knowledge, improve test-taking skills, and engage in meaningful dialogues with fellow students.

You'll be learning from a Certified Public Accountant (CPA), Chartered Global Management Accountant (CGMA), Master of Science in Taxation, Certified Post-Secondary Instructor (CPS), and a curriculum development expert. With a rich history in both academia and professional practice, your instructor brings a wealth of knowledge and experience to this course.

Whether you're an aspiring CPA, an accounting student, a business owner, or simply a curious mind, this course aims to equip you with the knowledge and skills to confidently navigate the complexities of corporate liabilities. So, join us on this insightful journey and take a step closer to mastering corporate accounting!

Who this course is for:

Accounting Students: Those pursuing undergraduate or postgraduate degrees in accounting will find this course incredibly useful. It will help solidify classroom learnings and provide practical examples to contextualize theoretical concepts.
Aspiring Accountants: If you are preparing for an accounting certification or planning to transition into an accounting role, this course will provide comprehensive coverage of essential topics.
Current Accounting Professionals: For those already in accounting roles seeking to expand their knowledge base, especially in bonds and liabilities, this course serves as an excellent resource. It can help enhance career progression opportunities and better equip professionals to deal with more complex accounting tasks.
Financial Analysts and Consultants: Professionals dealing with financial analysis and consultancy can gain deeper insights into bonds payable, notes payable, and corporate liabilities, which can greatly assist in making more accurate financial assessments and recommendations.
Entrepreneurs and Business Owners: If you're running your own business and want to gain a deeper understanding of the financial aspects, especially related to corporate liabilities, this course can provide valuable insights.

Accounting-Bonds Payable, Notes Payable, Liabilities

What you'll learn

Explore related topics

Course content

Introduction4 lectures • 18min

Bonds - Market Rate vs Contract Rate9 lectures • 24min

Bonds Issued at Premium11 lectures • 54min

Bonds Issued at Discount15 lectures • 2hr

Present Value - Bond Price15 lectures • 1hr 32min

Bond Retirement7 lectures • 29min

Notes Payable Introduction9 lectures • 19min

Amortization Schedule - Notes Payable11 lectures • 51min

Notes Payable Adjusting Entries9 lectures • 32min

Financial Statements - Long Term Liabilities17 lectures • 1hr 20min

Requirements

Description

Who this course is for: