Learning Objectives
By the end of this module, you will be able to:
Record bonds and long-term liabilities correctly on a balance sheet
Describe the characteristics of bonds payable
Evaluate financial implications and characteristics of bonds with
equity aspects
Generate appropriate notes as year-to-year documentation for
managing depreciation and inventory
Module at a Glance
This is the recommended plan for completing the reading assignments and
activities within the module. Additional information can be found in the
module Reading and Resources section and in the task list.
Review the required reading.
Complete the Chapter 14 homework assignment.
Complete and submit Milestone Two.
Reading and Resources
Required Resources
Textbook: Intermediate Accounting: Reporting and Analysis, Chapter 14
As you read, consider the following:
What is the difference between debentures and mortgage bonds?
Why would a bond sell at a different price than the face amount?
What are the two methods of amortizing premium and discount?
Click the Intermediate Accounting eText link in this module to access this
resource.
Additional Support (Optional)
Website: Amazon.com, Inc. Notes to Consolidated Financial Statements
This section of Amazon’s Form 10-K SEC filing from 2016 provides
examples of how to format notes to the financial statements in Milestone
Two and the final project. Use the following sections as guides for how to
present your work:
Inventories
Note 3—PROPERTY AND EQUIPMENT
Note 5—LONG-TERM DEBT
Video: Liabilities (13:43)
In this video, you will learn about different liabilities, including the different
types of bond issues. Consider the following as you watch:
What are the different types of liabilities, and how are they presented
on a balance sheet?
What are the different bond types?
What is the difference between issuing bonds at face value and at a
premium?
Video: Present Value of Bonds (9:34)
This video shows you how to calculate the present value of bonds. Consider
the following as you watch:
What information do you need to know in order to calculate the
current value of bonds?
What are the steps in the process to determine the present value of a
bond issue?
Textbook: Intermediate Accounting: Reporting and Analysis, Chapter M
Your textbook provides a review of time value of money concepts.
