Conceptual

Explain the types and payment patterns of notes. Appendix 10A—Explain and compute the present value of an amount(s) to be paid at a future date(s). Appendix 10C—Describe the accrual of bond interest when bond payments do not align with accounting periods. Appendix 10D—Describe accounting for leases and pensions.

Analytical

Compare bond financing with stock financing. Assess debt features and their implications. Compute the debt-to-equity ratio and explain its use.

Procedural

Prepare entries to record bond issuance and bond interest expense. Compute and record amortization of bond discount. Compute and record amortization of bond premium. Record the retirement of bonds. Prepare entries to account for notes.