discussion post:

Chapter 13

This module extends our conversation to the corporate form of organization. We describe the accounting and reporting for stock issuances, dividends and other equity transactions.

What is a corporation? Identify the key advantages and disadvantages of corporations.

Explain how to calculate the price-earnings ratio and describe how it is used in analysis of a company's financial condition and performance.

What is a stock split? How is a stock split different from a stock dividend?

Chapter 14

This module focuses on long-term liabiities. We explain how to value, record, amortize, and report these liabilities in financial statements.

What is a bond? Identify and discuss the different characteristics and features bonds may possess.

How are bond issue prices determined?

On January 1, a company borrowed $70,000 cash by signing a 9% installment note that is to be repaid with 4 equal year-end payments of $21,607. The amount borrowed is $70,000 and 4 years of interest at 9% equals $25,200, for a total of $95,200, yet the total payments on the note amount to only $86,428. Explain.