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Boundless Lecture Slides

Boundless Lecture Slides

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Boundless Lecture Slides

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  1. Boundless Lecture Slides Available on the Boundless Teaching Platform Free to share, print, make copies and changes. Get yours at www.boundless.com

  2. Using Boundless Presentations Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: • The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. http://boundless.com/teaching-platform • Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. If you have any questions or problems please email: educators@boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com

  3. About Boundless • Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the world’s best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the company’s wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com. Free to share, print, make copies and changes. Get yours at www.boundless.com

  4. Overview of Bonds Reporting of Long-Term Liabilities Valuing Bonds Bond Retirement Reporting and Analyzing Long-Term Liabilities ] Reporting of Long-Term Liabilities Free to share, print, make copies and changes. Get yours at www.boundless.com

  5. Reporting of Long-Term Liabilities > Overview of Bonds Overview of Bonds • Characteristics of Bonds • Types of Bonds • Issuing Bonds • Bonds Payable and Interest Expense Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-long-term-liabilities-11/overview-of-bonds-72/

  6. Reporting of Long-Term Liabilities > Valuing Bonds Valuing Bonds • Factors Affecting the Price of a Bond • Bond Valuation Method • Bonds Issued at Par Value • Bonds Issued at a Discount • Bonds Issued at a Premium • Valuing Zero-Coupon Bonds Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-long-term-liabilities-11/valuing-bonds-73/

  7. Reporting of Long-Term Liabilities > Bond Retirement Bond Retirement • Redeeming at Maturity • Redeeming Before Maturity Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-long-term-liabilities-11/bond-retirement-74/

  8. Reporting of Long-Term Liabilities > Reporting and Analyzing Long-Term Liabilities Reporting and Analyzing Long-Term Liabilities • Reporting Long-Term Liabilities • Analyzing Long-Term Liabilities • Debt-to-Equity Ratio • Times Interest Earned Ratio • Being Aware of Off-Balance-Sheet Financing Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/accounting/textbooks/boundless-accounting-textbook/reporting-of-long-term-liabilities-11/reporting-and-analyzing-long-term-liabilities-75/

  9. Appendix Free to share, print, make copies and changes. Get yours at www.boundless.com

  10. Reporting of Long-Term Liabilities Key terms • amortizeTo wipe out (a debt, liability etc. ) gradually or in installments. • amortizeTo wipe out (a debt, liability etc. ) gradually or in installments. • bondEvidence of a long-term debt, by which the bond issuer (the borrower) is obliged to pay interest when due, and repay the principal at maturity, as specified on the face of the bond certificate. The rights of the holder are specified in the bond indenture, which contains the legal terms and conditions under which the bond was issued. Bonds are available in two forms: registered bonds and bearer bonds. • callable bonda type of debt security that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity • contract rateAnother term for coupon rate, this is the amount of interest the business will pay on the principal of the bond. • convertible bonda type of debt security that the holder can convert into shares of common stock in the issuing company or cash of equal value, at an agreed-upon price • couponAny interest payment made or due on a bond, debenture or similar (no longer by a physical coupon). • couponAny interest payment made or due on a bond, debenture, or similar. • couponAny interest payment made or due on a bond, debenture or similar (no longer by a physical coupon). • Creditworthy1. Deemed likely to repay debts.2. Having an acceptable credit rating. • currentA length of time less than one year (12 months) into the future. • debentureA certificate that certifies an amount of money owed to someone; a certificate of indebtedness. Free to share, print, make copies and changes. Get yours at www.boundless.com

  11. Reporting of Long-Term Liabilities • debtMoney that one person or entity owes or is required to pay to another, generally as a result of a loan or other financial transaction. • defaultThe condition of failing to meet an obligation. • discount rateThe interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value. • EBITEarnings before interest and taxes. • EBITDAEarnings before interest, taxes, depreciation and amortization. • equityOwnership interest in a company, as determined by subtracting liabilities from assets. • face valueThe amount or value listed on a bill, note, stamp, etc.; the stated value or amount. • high-yield bondsIn finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors. • insolvent1. Unable to pay one's bills as they fall due.2. Owing more than one has in assets. • InterestThe price paid for obtaining, or price received for providing, money or goods in a credit transaction, calculated as a fraction of the amount of value of what was borrowed. • journal entryA journal entry, in accounting, is a logging of transactions into accounting journal items. The journal entry can consist of several items, each of which is either a debit or a credit. The total of the debits must equal the total of the credits or the journal entry is said to be "unbalanced. " Journal entries can record unique items or recurring items, such as depreciation or bond amortization. • liabilitiesAn amount of money in a company that is owed to someone and has to be paid in the future, such as tax, debt, interest, and mortgage payments. Free to share, print, make copies and changes. Get yours at www.boundless.com

  12. Reporting of Long-Term Liabilities • liabilityAn obligation, debt, or responsibility owed to someone. • Long-termA length of time greater than one year (12 months) into the future. • long-term investmentputting money into something with the expectation of gain, usually over multiple years • long-term liabilitiesobligations of the business that are to be settled in over one year • market interest ratethe interest rate determined through various investment systems, such as the stock market or the bond market • market rateThe interest rate associated with other bonds that have a similar risk factor. • maturityDate when payment is due • no-par value stockshares issued by a company without a minimum price for which they must be sold • off-balance-sheet financingcapital expenditures financed and classified it in such a way that it does not appear on the company's balance sheet • operating leaseA lease whose term is short compared to the useful life of the asset or piece of equipment being leased. • parEqual value; equality of nominal and actual value; the value expressed on the face or in the words of a certificate of value, as a bond or other commercial paper. • par valueThe amount or value listed on a bill, note, stamp, etc.; the stated value or amount. Free to share, print, make copies and changes. Get yours at www.boundless.com

  13. Reporting of Long-Term Liabilities • par value stockshares with a value stated in the corporate charter below which shares of that class cannot be sold upon initial offering • perpetuityAn annuity in which the periodic payments begin on a fixed date and continue indefinitely. • premiumA bonus paid in addition to normal payments. • principalThe money originally invested or loaned, on which basis interest and returns are calculated. • record datethe date at which a shareholder must be registered in order to receive a declared dividend • secured bonda debt security in which the borrower pledges some asset as collateral • subsidiaryA company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's equity. • times interest earned ratioeither EBIT or EBITDA divided by the total interest payable • yieldThe current return as a percentage of the price of a stock or bond. • zero-coupon bondA zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. Free to share, print, make copies and changes. Get yours at www.boundless.com

  14. Reporting of Long-Term Liabilities Pacific Railroad Bond $1,000 (30 year, 7%) "Pacific Railroad Bond" (#93 of 200) issued by the City and County of San Francisco. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."San Francisco Pacific Railroad Bond WPRR 1865."CC BY-SAhttp://en.wikipedia.org/wiki/File:San_Francisco_Pacific_Railroad_Bond_WPRR_1865.jpgView on Boundless.com

  15. Reporting of Long-Term Liabilities Jeffrey Skilling Jeffrey Skilling is the former CEO of Enron, which was notorious for it's use of off-balance-sheet-financing. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Jeffrey Skilling mug shot."Public domainhttp://commons.wikimedia.org/wiki/File:Jeffrey_Skilling_mug_shot.jpgView on Boundless.com

  16. Reporting of Long-Term Liabilities World countries Standard & Poor's ratings An example of the credit ratings prescribed by Standard & Poor's as a result of their respective long-term liability analysis for debt issued at the national government level. Countries issue debt to build national infrastructure. Look how expensive it is to raise capital for such projects based on geographic region. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."World countries Standard & Poor's ratings."CC BYhttp://en.wikipedia.org/wiki/File:World_countries_Standard_&_Poor's_ratings.svgView on Boundless.com

  17. Reporting of Long-Term Liabilities A bond certificate A bond certificate issued via the South Carolina Consolidation Act of 1873. How the sale of a bond is recorded on a company's books depends on how the debt is initially classified by the acquiring investor. Debt securities can be classified as "held-to-maturity," a "trading security," or "available-for-sale. " Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."South Carolina consolidation bond."CC BY-SAhttp://en.wikipedia.org/wiki/File:South_Carolina_consolidation_bond.jpgView on Boundless.com

  18. Reporting of Long-Term Liabilities A bond from the Dutch East India Company A bond is a financial security that represents a promise by a company or government to repay a certain amount, with interest, to the bondholder. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Vereinigte Ostindische Compagnie bond."CC BY-SAhttp://en.wikipedia.org/wiki/File:Vereinigte_Ostindische_Compagnie_bond.jpgView on Boundless.com

  19. Reporting of Long-Term Liabilities Amortization Schedule An example of an amortization schedule of a $100,000 loan over the first two years. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Amortization schedule."CC BY-SA 3.0https://en.wikipedia.org/wiki/Amortization_scheduleView on Boundless.com

  20. Reporting of Long-Term Liabilities The General Ledger All transactions made by the company in relation to the bond must be recorded in its general ledger. The general ledger contains all entries from both the General Journal and the Special Journals. Free to share, print, make copies and changes. Get yours at www.boundless.com Flickr."All sizes | y2cary3n6mng-vjl146-journals-to-general-ledger (2) | Flickr - Photo Sharing!."CC BYhttp://www.flickr.com/photos/sampjb/7690686912/sizes/l/View on Boundless.com

  21. Reporting of Long-Term Liabilities Leverage Ratios Graph of how infamous investment banks were leveraged prior to the credit crisis of 2008. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Leverage Ratios."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Leverage_Ratios.pngView on Boundless.com

  22. Reporting of Long-Term Liabilities "Beat Back the Hun with Liberty Bonds" After war was declared, the moral imperative of liberty and the Allied cause was touted in official, government-sponsored propaganda. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."WWIHunNatlArchives."Public domainhttp://en.wikipedia.org/wiki/File:WWIHunNatlArchives.jpgView on Boundless.com

  23. Reporting of Long-Term Liabilities Balance Sheet A bond issued by a company is recorded as a liability on its balance sheet. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."DWBA DBS."CC BY-SAhttp://commons.wikimedia.org/wiki/File:DWBA_DBS.jpgView on Boundless.com

  24. Reporting of Long-Term Liabilities Old Lousianna State Bond Louisiana "baby bond", 1874 series, payable 1886 Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia Foundation."File:Baby Bond Louisiana 5 Back 1880.jpg - Wikimedia Foundation."Public domainhttp://wikimediafoundation.org/wiki/File:Baby_Bond_Louisiana_5_Back_1880.jpgView on Boundless.com

  25. Reporting of Long-Term Liabilities Sallie Mae facilitates several long-term liabilities Student Loans are a prime example. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Slmworldheadquarters."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Slmworldheadquarters.jpegView on Boundless.com

  26. Reporting of Long-Term Liabilities Long-Term Interest Rates The Times Interest Earned Ratio is an indication of a company's overall financial health. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Long term interest rates."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Long_term_interest_rates.pngView on Boundless.com

  27. Reporting of Long-Term Liabilities Government Bond This is an image of a state-issued debt instrument including all the essential information for the indenture. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."South Carolina consolidation bond."Public domainhttp://commons.wikimedia.org/wiki/File:South_Carolina_consolidation_bond.jpgView on Boundless.com

  28. Reporting of Long-Term Liabilities Amortization & depreciation in the accounting cycle A bond's discount amount must be amortized over the term of the bond. Free to share, print, make copies and changes. Get yours at www.boundless.com Static Flckr.CC BYhttp://farm9.staticflickr.com/8015/7690683338_3b137feb6f_m.jpgView on Boundless.com

  29. Reporting of Long-Term Liabilities Attribution • Wikipedia."Long-term liabilities."CC BY-SA 3.0http://en.wikipedia.org/wiki/Long-term_liabilities • Wikipedia."Investment."CC BY-SA 3.0http://en.wikipedia.org/wiki/Investment • Wiktionary."current."CC BY-SA 3.0http://en.wiktionary.org/wiki/current • Boundless Learning."Boundless."CC BY-SA 3.0http://www.boundless.com//accounting/definition/long-term • Wiktionary."liability."CC BY-SA 3.0http://en.wiktionary.org/wiki/liability • Wikipedia."Long term liabilities."CC BY-SA 3.0http://en.wikipedia.org/wiki/Long_term_liabilities • Wikipedia."Times interest earned."CC BY-SA 3.0http://en.wikipedia.org/wiki/Times_interest_earned • Wiktionary."EBITDA."CC BY-SA 3.0http://en.wiktionary.org/wiki/EBITDA • Wikipedia."EBIT."CC BY-SA 3.0http://en.wikipedia.org/wiki/EBIT • Wiktionary."Interest."CC BY-SA 3.0http://en.wiktionary.org/wiki/Interest • Wikipedia."Times interest earned."CC BY-SA 3.0http://en.wikipedia.org/wiki/Times_interest_earned • Wiktionary."Creditworthy."CC BY-SA 3.0http://en.wiktionary.org/wiki/Creditworthy • Wiktionary."insolvent."CC BY-SA 3.0http://en.wiktionary.org/wiki/insolvent • Dropbox.CC BYhttp://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%202.pdf • Wikipedia."Long-term liabilities."CC BY-SA 3.0http://en.wikipedia.org/wiki/Long-term_liabilities • Wikipedia."Standard & Poor's."CC BY-SA 3.0http://en.wikipedia.org/wiki/Standard_&_Poor's%23Long-term_credit_ratings • Dropbox.CC BYhttp://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%202.pdf Free to share, print, make copies and changes. Get yours at www.boundless.com

  30. Reporting of Long-Term Liabilities • Wikipedia."Standard & Poor's."CC BY-SA 3.0http://en.wikipedia.org/wiki/Standard_&_Poor's%23Long-term_credit_ratings • Wiktionary."maturity."CC BY-SA 3.0http://en.wiktionary.org/wiki/maturity • Wikipedia."Bond (finance)."CC BY-SA 3.0http://en.wikipedia.org/wiki/Bond_(finance) • Wiktionary."equity."CC BY-SA 3.0http://en.wiktionary.org/wiki/equity • Wiktionary."debt."CC BY-SA 3.0http://en.wiktionary.org/wiki/debt • Wikipedia."Debt to equity ratio."CC BY-SA 3.0http://en.wikipedia.org/wiki/Debt_to_equity_ratio • Wikipedia."Off-balance-sheet."CC BY-SA 3.0http://en.wikipedia.org/wiki/Off-balance-sheet • Wiktionary."subsidiary."CC BY-SA 3.0http://en.wiktionary.org/wiki/subsidiary • Wikipedia."operating lease."CC BY-SA 3.0http://en.wikipedia.org/wiki/operating%20lease • Wikipedia."Off-balance-sheet."CC BY-SA 3.0http://en.wikipedia.org/wiki/Off-balance-sheet • Wiktionary."face value."CC BY-SA 3.0http://en.wiktionary.org/wiki/face_value • Wikipedia."Cash dividend."CC BY-SA 3.0http://en.wikipedia.org/wiki/Cash_dividend%23Forms_of_payment • Wiktionary."yield."CC BY-SA 3.0http://en.wiktionary.org/wiki/yield • Wiktionary."coupon."CC BY-SA 3.0http://en.wiktionary.org/wiki/coupon • Wikipedia."Convertible bond."CC BY-SA 3.0http://en.wikipedia.org/wiki/Convertible_bond • Wikipedia."Loan."CC BY-SA 3.0http://en.wikipedia.org/wiki/Loan%23Secured • Wiktionary."default."CC BY-SA 3.0http://en.wiktionary.org/wiki/default • Wiktionary."coupon."CC BY-SA 3.0http://en.wiktionary.org/wiki/coupon • Wiktionary."principal."CC BY-SA 3.0http://en.wiktionary.org/wiki/principal Free to share, print, make copies and changes. Get yours at www.boundless.com

  31. Reporting of Long-Term Liabilities • Wiktionary."debenture."CC BY-SA 3.0http://en.wiktionary.org/wiki/debenture • Wikipedia."Bond (finance)."CC BY-SA 3.0http://en.wikipedia.org/wiki/Bond_(finance) • Dropbox.CC BYhttp://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%201.pdf • Wiktionary."par."CC BY-SA 3.0http://en.wiktionary.org/wiki/par • Wiktionary."perpetuity."CC BY-SA 3.0http://en.wiktionary.org/wiki/perpetuity • Wiktionary."coupon."CC BY-SA 3.0http://en.wiktionary.org/wiki/coupon • Wikibooks."Intermediate Accounting/Liabilities."CC BY-SA 3.0http://en.wikibooks.org/wiki/Intermediate_Accounting/Liabilities%23Bonds_payable • Wikipedia."Bond (finance)."CC BY-SA 3.0http://en.wikipedia.org/wiki/Bond_(finance) • Wikibooks."Intermediate Accounting/Preparation of Financial Statements."CC BY-SA 3.0http://en.wikibooks.org/wiki/Intermediate_Accounting/Preparation_of_Financial_Statements • OpenStax CNX."Global Text Project, Financing Your Organization - Basic Types of Accounts. September 17, 2013."CC BY 3.0http://cnx.org/content/m35481/latest/ • Wikibooks."Accountancy/Introduction to Accountancy."CC BY-SA 3.0http://en.wikibooks.org/wiki/Accountancy/Introduction_to_Accountancy • Wiktionary."discount rate."CC BY-SA 3.0http://en.wiktionary.org/wiki/discount_rate • Wiktionary."bond."CC BY-SA 3.0http://en.wiktionary.org/wiki/bond • Wikipedia."Bond (finance)."CC BY-SA 3.0http://en.wikipedia.org/wiki/Bond_(finance) • Wikipedia."Bond valuation."CC BY-SA 3.0http://en.wikipedia.org/wiki/Bond_valuation • Wikipedia."Interest rate."CC BY-SA 3.0http://en.wikipedia.org/wiki/Interest_rate%23Market_interest_rates • Boundless Learning."Boundless."CC BY-SA 3.0http://www.boundless.com//accounting/definition/market-rate • Boundless Learning."Boundless."CC BY-SA 3.0http://www.boundless.com//accounting/definition/contract-rate • Wiktionary."par value."CC BY-SA 3.0http://en.wiktionary.org/wiki/par_value Free to share, print, make copies and changes. Get yours at www.boundless.com

  32. Reporting of Long-Term Liabilities • Wikipedia."No-par stock."CC BY-SA 3.0http://en.wikipedia.org/wiki/No-par_stock • Wikipedia."Par value."CC BY-SA 3.0http://en.wikipedia.org/wiki/Par_value%23Stock • http://www.opencollegetextbooks.org/category/accounting/.CC BYhttp://www.opencollegetextbooks.org/category/accounting/ • Wiktionary."amortize."CC BY-SA 3.0http://en.wiktionary.org/wiki/amortize • http://www.opencollegetextbooks.org/category/accounting/.CC BYhttp://www.opencollegetextbooks.org/category/accounting/ • Wiktionary."liabilities."CC BY-SA 3.0http://en.wiktionary.org/wiki/liabilities • Wikipedia."journal entry."CC BY-SA 3.0http://en.wikipedia.org/wiki/journal%20entry • Wikipedia."Bond (finance)."CC BY-SA 3.0https://en.wikipedia.org/wiki/Bond_(finance)%23Bond_valuation • Wikipedia."Long-term liabilities."CC BY-SA 3.0http://en.wikipedia.org/wiki/Long-term_liabilities • Wikipedia."Liability (financial accounting)."CC BY-SA 3.0http://en.wikipedia.org/wiki/Liability_(financial_accounting) • Wiktionary."amortize."CC BY-SA 3.0http://en.wiktionary.org/wiki/amortize • http://www.opencollegetextbooks.org/category/accounting/.CC BYhttp://www.opencollegetextbooks.org/category/accounting/ • Wikipedia."zero-coupon bond."CC BY-SA 3.0http://en.wikipedia.org/wiki/zero-coupon%20bond • Wikipedia."Zero-coupon bond."CC BY-SA 3.0http://en.wikipedia.org/wiki/Zero-coupon_bond • Wikipedia."Present value."CC BY-SA 3.0http://en.wikipedia.org/wiki/Present_value • Wikipedia."Callable bond."CC BY-SA 3.0http://en.wikipedia.org/wiki/Callable_bond • Wikipedia."high-yield bonds."CC BY-SA 3.0http://en.wikipedia.org/wiki/high-yield%20bonds • Wikipedia."premium."CC BY-SA 3.0http://en.wikipedia.org/wiki/premium • Wikipedia."Bond (finance)."CC BY-SA 3.0http://en.wikipedia.org/wiki/Bond_(finance)%23Others Free to share, print, make copies and changes. Get yours at www.boundless.com