Albrecht Ch 11 SM FinalWord文件下载.docx

Albrecht Ch 11 SM FinalWord文件下载.docx

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6.Underacapitallease,theleaseliabilityattheinceptionoftheleaseisthepresentvalueofthefutureannualleasepaymentsdiscountedattheleasingcompany’sborrowingrate.Inotherwords,theleasepaymentsincludeaprincipalelementandaninterestelement.Bydiscountingtheleasepayments,thepresentvalueisequaltotheprincipalelementofthetransaction.

7.Companiesprefertoclassifyleasesasoperatingleasesratherthanascapitalleasestoreducetheamountoftheirreportedliabilities.Theeconomicobligationassociatedwithanoperatingleaseisnotclassifiedasa“liability”foraccountingpurposes,andthusisnotincludedinthebalancesheet.Becauseofthis,operatingleasesareaformof“off-balance-sheet

financing.”

8.Companiesusuallysellbondsthroughunderwriterstoindividuals,othercompanies,pensionfunds,insurancecompanies,universities,orotherinstitutionsthatperceivebondstobeanattractiveinvestment.

Becausebondsareusuallysoldinsmalldenominations,almostanyonecanbuythem.

9.Twoimportantfactorsindeterminingtheissuancepriceofabondare

（1）themarketrateofinterestand

（2）thelengthoftimeuntilthematurityofthebonds.Themarketrateofinterestdeterminestheeffectivecostofborrowingperperiod.Theperioduntilthematurityofthebondsdeterminesthelengthoftimeoverwhichthefacevalueandtheinterestpaymentsarediscountedinarrivingatthebondissuanceprice.

10.Bondscanmatureorbeeliminatedasfollows:

a.Termbondsmatureinonesinglesumonaspecifiedfuturedate.

b.Serialbondsmatureinaseriesofinstallments.

c.Callablebondsaretermorserialbondsthattheissuercanredeemorcallatanytimeataspecifiedprice.

d.Convertiblebondsaretermorserialbondsthatcanbeconvertedtoothersecurities,suchasstocks,afteraspecifiedtimeattheoptionofthebondholder.

11.Ifabond’sstatedinterestrateisbelowthemarketinterestrate,itwillusuallysellatadiscount.Thelowerissuancepricewouldincreasethebond’syieldratetothemarketrateofinterest.

12.Ifyouthoughtthemarketrateofinterestwasgoingtodropinthenearfuture,itwouldprobablybewisetoinvestinbondsbecause,asthemarketrateofinterestdrops,bondsusuallyincreaseinprice.Everyonewantsahigher-payinginterestinvestment.

13.Bondswillsellatornearfacevalueinatleasttwoinstances:

（1）whenthestatedrateofinterestonthebondsisequaltothemarketrateofinterest,andinvestmentinthefirmisnomoreorlessriskythanitisinotherbondissuers;

and

（2）whenthebondnearsmaturity,becauseonthematuritydatethefacevalueofthebondwillbepaidtobondholders.

14.Theretirementofbondsbeforematuritymayresultinagainoralossbecausethepricepaidtoretirethebondsisgreater（loss）orless（gain）thanthecarryingvalueofthebondsonthatdate.Thepricepaidtoretirethebondsmaybedifferentfromthecarryingvalueofthebondsbecausetheeffectiverateofinterestforcurrentinvestmentsandthestatedrateofinterestonthebondsmaybeinadifferentrelationshiptoeachotherthanwhenthebondswereissued.

15.Thedebtratioiscalculatedbydividingtotalliabilitiesbytotalassets.Itmeasuresthepercentageoftotalassetsinanorganizationthatwerefinancedbydebtorbyborrowingmoney.

16.Fromthestandpointofalender,ahightimesinterestearnedratioismoreattractivethanalowtimesinterestearnedratio.Themagnitudeofthetimesinterestearnedratioindicateshowmuchcushionacompanyhasinmakingitsinterestpayments;

thehighertheratio,thelesslikelythecompanywillbeunabletomakeitsinterestpayments.

17.*DiscountonBondsisacontralong-termliabilityaccountthatisdeductedfromBondsPayableonthebalancesheet.

18.*TheaccountDiscountonBondsisacontra-liabilityaccountthatisoffsetagainstthebondspayableaccounttoarriveatthebookvalueofthebondspayable.Thediscount（withitsdebitbalance）servestoreducethebookvalueofthebonds（withtheircreditbalance）.Asthediscountisreduced,theamountoffsetagainstthebondsbecomessmaller,therebyincreasingthebookvalueofthebonds.

19.*Theeffective-interestamortizationmethodismoretheoreticallyappropriatethanthestraight-linemethodbecauseittakesintoconsiderationthetimevalueofmoney.Theeffective-interestamortizationamountisequaltotheeffectiveinterestratetimestheamountofmoneyactuallyborrowedatanypointintime.Thestraight-linemethodprovidesonlyanapproximationoftrueinterest.Also,witheffective-interestamortization,thebondbalanceisalwaysequaltothepresentvalueofthefuturebondpayments.

20.*Thecarryingvalueofabondisthefaceamountofthebondplusanypremiumorlessanydiscount.Thediscountorpremiumisamortizedoverthelifeofthebond,resultinginthebookvalueandthefaceamounteventuallybeingequalonthedaythebondmatures.

21.*Undertheeffective-interestmethod,thecarryingvalueofthebondinfluencestheamountofbondinterestexpenseforaperiod.Theamountofinteresteachperiodinturnaffectsthecarryingvalueforthenextperiod.Tocomputebondinterestexpenseusingtheeffective-interestmethod,thecarryingvalueofthebondismultipliedbytheeffectiverateofinterest.Thedifferencebetweentheamountofcashpaidandthebondinterestexpenseservestoreducethediscountorpremiumaccount.Thus,thecarryingvalueforthenextperiodischangedbytheamountofthepremiumordiscountamortizedinthecurrentperiod.

22.*Whentheeffectiveinterestrateonbondsishigherthanthestatedrate,thebondswillsellatadiscountbecauseinvestorsareaskingforahigherreturnontheirinvestmentthanwhattheywillreceiveincashpayments.Therefore,thebondinterestexpenseforeachperiodwillbehigherthanthecashpaidsincethebondinterestexpensefortheperiodwillbeequaltothecashpaidplusthebonddiscountamortization.Asamplejournalentryshowingtherelativeamountofbondinterestexpenseinrelationtocashpaidis:

BondInterestExpense2,304

Cash2,000

DiscountonBonds304

*Relatestoexpandedmaterial.

PRACTICEEXERCISES

PE10–1（LO1）PresentValueofaSingleAmount

Amountofpayment$20,000

Presentvaluefactorof$1tobepaidin5periodsat8%

interest（fromTableI）0.6806

Presentvalueofpayment$13,612

Alternatively,onemayuseabusinesscalculatortocalculatethissamepresentvaluepaymentasfollows.

a.CLEARALL.

b.SetP/YRto1.

1.20,000PressFV.

2.5PressN.

3.8PressI/YR.

4.PressPVfortheanswerof$13,611.66.

PE10–2（LO1）FutureValueofaSingleAmount

Presentvalueinsavingsaccount$61,000

Presentvaluefactorof$1tobepaidin10periodsat10%

interest（fromTableIII）2.5937

Futurevalue$158,216（rounded）

Alternatively,onemayuseabusinesscalculatortocalculatethissamefuturevaluepaymentasfollows.

1.61,000PressPV.

2.10PressN.

3.10PressI/YR.

4.PressFVfortheanswerof$158,218.29.

PE10–3（LO1）InterestRateperCompoundingPeriod

Interestrateper

compoundingperiod

=

=4%

PE10–4（LO1）NumberofInterestPeriods

Number

ofyears

Compounding

periodsperyear

Numberof

interestperiods

==127=84periods

PE10–5（LO1）FutureValueofSingleAmountCompoundedMonthly

Presentvalueinsavingsaccount$10,000

Presentvaluefactorof$1tobepaidin60periodsat2%

interest（fromTableIII）3.2810

Futurevalue$32,810（rounded）

1.10,000PressPV.

2.60PressN.

3.2PressI/YR.

4.PressFVfortheanswerof$32,810.31.

PE10–6（LO1）ComputingthePresentValueofanAnnuity

Amountofsemiannualpayment$1,600

Presentvaluefactorofanannuityof$1discountedfor

16paymentsat5%（fromTableII）10.8378

Presentvalueofpayments$17,340（rounded）

Alternatively,onemayuseabusiness