ACC 545 Week 4 Restructuring Debt

May 4th, 2015
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ACC 545 Week 4 Restructuring Debt

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Restructuring Debt and Postemployment Benefit ImpactsNameACC/545DateProfessor: MEMORANDUMTO: Accounting Manager FROM: Name, ControllerDATE: DateSUBJECT: Restructuring Debt and Postemployment Benefit ImpactsIn response to the questions surrounding our companys desire to restructure debt, this memo explains the reporting requirements for the three general categories of long-term debt bonds payable, notes payable, and capital leases. Additionally, it will provide journal entries for the restructuring along with a presentation of the new postemployment expense schedule and notes.Bonds PayableLong-term bonds are a key source of financing available to corporations. They represent an obligation for repayment of the principle amount at a future date with interest typically on an annual or semi-annual basis. The most common forms are serial bonds issued in groups maturing at different dates, convertible bonds may be exchanged for a different security, registered bonds issued to a specific owner, and bearer bonds require involvement of a bank or a broker. Additionally, bonds payable may be unsecured backed merely by a companys guarantee to pay or secured by collateral such as a mortgage bond. The majority of bonds are issued at a specified interest rate although some are regularly traded at discount with an implied interest rate inbuilt to the discounted sale price. Regardless of the type, all of the terms must be disclosed i

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