中级财务会计英文ch08.pptx

;;;Defined by SFAC No. 6 as: Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.;It involves a present duty or responsibility of the company to one or more entities that will be settled by the probable future transfer or use of assets at a specified or determinable date, on occurrence of a specific event, or on demand. The duty or responsibility obligates the company, leaving it little or no discretion to avoid the future sacrifice. The transaction or other event obligating the company has already happened.;Interest that is not explicitly specified in the terms of the liability. Need not be recognized. ;;Having Contractual Amount;Amount Depends on Operations;Amount Must Be Estimated;Obligations arising from the company’s ongoing operations -- includes the acquisition of inventory, supplies, materials and services. Commonly called trade payables. Other current payables should be reported separately. ;Notes that arise from the same types of transactions as trade payables. Can be secured or unsecured. Can be interest-bearing or noninterest-bearing. -- Interest-bearing notes carry a stated rate of interest. -- Noninterest-bearing notes reflect an effective rate of interest or a yield.;The rate of interest is specified and is called the stated rate. The debtor (or borrower) receives cash, other assets, or services. The debtor repays the face amount of the note plus interest at the stated rate.; On September 1, Eagle Boats borrows $80,000 from Cooke Bank. The note is due in 180 days and has a stated interest rate of 9%. Record the borrowing on September 1.; On September 1, Eagle Boats borrows $80,000 from Cooke Bank. The note is due in 180 days and has a stated interest rate of 9%. Record the borrowing on September 1.; How much interest is due to Cooke Bank at year-end, on December 31?