Far Ch 2D Matrix

Front 1

Creditor losses on a restructuring are calculated based on ____________
Debtor's gains are calculated based on ______________

Back 1

PRESENT VALUES
UNDISCOUNTED FUTURE CASH PAYMENTS INCLUDING INTEREST

Front 2

A SERVICING asset or liability shall be amortized in proportion to and over the period of ____________-

Back 2

ESTIMATED NET SERVICING INCOME or NET SERVICING LOSS

Front 3

Face value of the bond = 1,000,000
Discount = 150,000
Yield/Market rate = 12%, Stated rate = 8%
Calculate :
1.Carring amount @ issue date or Purchase price
2. Amortization of DISCOUNT using Straight-line and 3. Amortization using Effective interest rate.
4. Carring amount @ Year-end

Back 3

1.Carring amount @ issue date or Purchase price
= Face - discount
2.Amortization of discount using Straight-line = discount / years to muturity
3.Amortization of discount using Effective interest = Yield rate x Carring amount less Stated rate x Face value
4a.Carring amount @ Year-end using Straight-line = Carring amount @ issue date + SL amortization of a DISCOUNT ( - SL amortization of a PREMIUM)
4b.Carring amount @ Year-end using Effective interest = Carring amount @ issue date + EI amortization of a DISCOUNT ( - EI amortization of a PREMIUM)

Front 4

To determin the issue price of a bond , the cash flow from the bond should be discounted at the ___________ rate.
The cash flows include the principal repayment and interest payments calculated at ___________ rate.
3. The net proceeds= _______________

Back 4

1. YIELD or MARKET RATE
2. STATED RATE
3. ISSUE PRICE LESS THE COST TO ISSUE THE BONDS

Front 5

CONVERSION OF DEBT TO EQUITY
Using the book value method, the carrying value of the debt ( bonds) is removed and is replased by Stockholder Equity in exaclty the same total amount
Recrd the JE:

Back 5

Bonds payble DR
Premium on bonds DR/ Discount on bonds CR
Common stock ( par x # of shares) CR
Additional paid-in capitalCR

Front 6

Term bonds are bonds which are scheduled to be outstanding for ____________

Back 6

fixed period or TERM

Front 7

A transfer of financial assets in which the transferor surrenders control over those financial assets, shall be accounted for as a sale to the extent that consideration other than ____________ in the transferred assets is received in exchange.

Back 7

BENEFICIAL INTERESTS

Front 8

INTEREST EXPENSE @ EFFECTIVE INTEREST RATE for 2 months=

Back 8

Carrying value of the bonds x Effective interest rate x Time period

Front 9

Debentures are ____________

Back 9

UNSECURED BONDS

Front 10

The amount of cash received by a BONDHOLDER (INVESTOR) at regular interest payment intervals throughout the life of the bonds will always be at ________ rate applied to the __________ of the bond.

Back 10

STATED RATE
FACE AMOUNT OF THE BOND.

Front 11

DEFEASANCE is a privision found in some debt agreements whereby the contract is ___________

Back 11

NULLIFIED if specified acts are performed

Front 12

ARO is ______________.
SFAS 143 requires the initial ARO liability to be recorded at its _______ and is amortized.
JE Cr__Dr?

Back 12

Asset Retirement Obligation

PRESENT VALUE

Dr ASSET
__Cr LIABILITY

Front 13

The ENTIRE _______ and __________ for warranty are recognized in the year in which the warranted product ____________
The wrranty expenditures incurred in the year result in a reduction of the _____________

Back 13

LIABILITY AND EXPENSE
IS SOLD
ESTIMATED WARRANTY LIABILITY

J/E is
Warranty expense DR
Estimated warranty liability CR

Tor record the warranty expenditures:
Estimated warranty liability DR
Cash CR

Front 14

Under EQUITY METHOD in accounting for the investment, the DIVIDENDS received are ___________, they are treated as a form of _____________

Back 14

NOT INCOME
RETURN OF INVESTMENT

Front 15

The contract to purchase a fixed amount of merchandise from the supplier at a 10% discount should be shown as a ___________ for the amount of the 10% discount on the fixed amount.

Back 15

DEFFERED CHARGE (prepaid purchase)

Front 16

If the Fair value of the asset approximated the balance due on the NOTE, neither the Debtor not the Creditor records _______ or ________ on the settlemnt of the debt.

However, the debtor MUST record _____ on the DISPOSAL of the asset.

Back 16

GAIN or LOSS
G/L

Front 17

Face value of the bond
X ( Stated Rate - Market Rate)
-----------------------------------------
????

Back 17

bonds Discount or Premium

Front 18

The associated asset Retirement costs are ________ as part of teh carrying amount of the long-lved asset.
The oligations associated with the Retirement at the end of life should be recorded as _______ JE.

Back 18

CAPITALIZED
DR ASSET
-----CR LIABILITY

Front 19

________ liabilities also include long-term obligations that are or will be CALLABLE by the creditor bacause the debtor has __________a covenant in debt agreement.

Back 19

CURRENT
violated

Front 20

Employer's payroll tax LIABILITY __________ amounts withheld from emploee pay.

The balance at the bank for payment should _________ amounts withheld from emploee pay.

Back 20

do not include
INCLUDE