Acc/291 Week 1 Reflection

Team D Reflection During Week Two of ACC/291 Team D’s objective was to discuss the week’s topics as outlined in the syllabus. Additionally, team members were to discuss any challenges or problems with the topics that may have been experienced. Below is a summary of Team D’s discussion for Week Two.

Objective 2.1 Differentiate among accounts payable, notes payable and accrued expenses. The team’s objective was first to differentiate and explain accounts payable, notes payable and accrued expenses. As discussed, accounts payable is the money owed to suppliers by the company. Most companies pay their invoices in thirty days, so they do not accrue any interest. Notes payable was defined as a promissory note that is written by a company to assure its lenders of future payment,
Issuance of bonds is a certificate of debt that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal. Bonds may be issued at face value, below face value (at a discount), or above face value (at a premium). When recording the Issuance of Bonds on the necessary journal entries these three different types of bond change the way the bond is recorded. Periodic interest is usually based on a period of time, i.e. daily, monthly, quarterly, semiannually or annually. Periodic interest is recorded based on the time period of the bond. Amortization is paying off debt in regular installments over a period of time. Due to the fact that bonds sold at a discount or a premium cost the company money, these costs must be paid back over the period of the bond to ensure a balance. There are two methods of amortizing bond premiums and discounts: 1) effective-interest method and 2) straight line