ACCT 200 Outline of Last Lecture I Homework 7 2 II Homework 7 3 III Homework 7 4 IV Homework 7 6 V Homework 7 9 VI Homework 7 11 VII Homework 7 12 VIII Homework 7 14 Outline of Current Lecture I Current Liabilities II Contingent Liabilities III Long Term Liabilities IV Equity Financing Current Lecture I II Current Liabilities a Lender receiving note creates the note receivable b Borrower issuing note creates note payable c Market rate annual interest rate d Interest Expense is computed as P x R x T e On the exam always use 30 days in a month f If there is no reference to the date of a note assume it is long term NOT current Contingent Liabilities a Amounts that MAY be owed in the future GAAP says that these must be recorded if the amount is estimable and probable to be paid b An example of contingent liability is a lawsuit if you get sued and lose your case you will have to pay a fee BUT if you win you owe nothing These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute III IV Long Term Liabilities a Bonds payable similar to a note but much larger in amount bonds represent money pulled from multiple people these must be paid on twice a year b The only time a company receives cash is when the stock was initially issued Equity Financing a Preferred stockholders get paid first b Common stockholders get paid whatever is leftover after preferred stocks have been paid
View Full Document
Unlocking...