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ACC 291 Wk 3 Team Reflection

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Week 3 Reflection
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Week 3 Reflection
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Week 3 Reflection
Team B was discussing what they have learned in week two. Team B learned many
things. One thing we discussed was how to distinguish between accounts payable, notes
payable,and accrued expenses. Second, team B can prepare necessary journal entries to record
the issuance of bonds, the periodic interest, and amortization of bond premiums and discounts.
Third, team B discussed how to calculate depreciation and amortization expense using various
methods. Finally, we discussed how all these things relate to the practice of accounting and there
uses in business.
Accounts payable is when companies have liabilities that need to be paid and usually are
paid on a monthly basis until the liability is paid in full. Also, accounts payable is most
frequently used for long term financing needs. Notes payable is are used for short term financing
needs and differs from accounts payable not only in regards to the financing needs but also to
give the lender formal proof in case legal action needs to be filed to collect the debt. Accrued
expenses are also liabilities, mostly associated with interest owed on an item. For example if a
company were to purchase a company vehicle the interest that is accrued would be an accrued
expense.
According to Principles of Accounting, debt investments, such as bonds are recorded at
three different stages. The first is the acquisition, second is the interest, and third is the sale.
When recording a journal entry for the acquisition of bonds, the amount of the bond plus
brokerage fees goes under debt investments as a debit and under cash as a credit.
When recording bond interest, take the amount of the bonds initially purchased, multiply
by the yearly interest and you have the yearly amount of interest paid. If it is semiannual,

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 Week 3 Reflection ACC291 Week 3 Reflection Team B was discussing what they have learned in week two. Team B learned many things. One thing we discussed was how to distinguish between accounts payable, notes payable,and accrued expenses. Second, team B can prepare necessary journal entries to record the issuance of bonds, the periodic interest, and amortization of bond premiums and discounts. Third, team B discussed how to calculate depreciation and amortization expense using various methods. Finally, we discussed how all these things relate to the practice of accounting and there uses in business. Accounts payable is when companies have liabilities that need to be paid and usually are paid on a monthly basis until the liability is paid in full. Also, accounts payable is most frequently used for long term financing needs. Notes payable is are used for short term f ...
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