1. Current liabilities

a. Definition of current liabilities

b. Accounting for payroll

i. Prepare journal entry to record payroll

ii. Prepare journal entry to record payroll taxes

2. Understand the classifications: secured and unsecured bonds, callable and convertible bonds

3. Understand the concepts: market interest rate, contractual interest rate, face value, market

value (the present value) of a bond

4. Accounting (journal entries) for bonds transactions

a. How is the price of a bond quoted?

b. Issuance of bonds at face value

c. Issuance of bonds at discount or premium

i. Journal entries

ii. interest implication of the issuance discount and premium

d. Amortization of premium on bonds payable

i. Computation and journal entries

ii. Changes of the account balance