ACCT 200 Outline of Last Lecture I. Homework 7-2II. Homework 7-3III. Homework 7-4IV. Homework 7-6V. Homework 7-9VI. Homework 7-11VII. Homework 7-12VIII. Homework 7-14Outline of Current Lecture I. Current LiabilitiesII. Contingent LiabilitiesIII. Long Term LiabilitiesIV. Equity FinancingCurrent LectureI. Current Liabilitiesa. Lender—receiving note; creates the note receivableb. Borrower—issuing note; creates note payablec. Market rateannual interest rated. Interest Expense is computed as P x R x Te. On the exam, always use 30 days in a monthf. If there is no reference to the date of a note, assume it is long term NOT currentII. Contingent Liabilitiesa. Amounts that MAY be owed in the future GAAP says that these must be recorded if the amount is estimable and probable to be paidb. 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. Long Term Liabilitiesa. 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 yearb. The only time a company receives cash is when the stock was initially issued!IV. Equity Financinga. Preferred stockholders get paid firstb. Common stockholders get paid whatever is leftover after preferred stocks have been
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