COURSE OUTLINE
| Modular Outline:
This course is broken into 5 modules. Each module covers the specific topics listed below:
| WEEK 1
MODULE 1: DEBT FINANCING – SHORT AND LONG TERM, NOTES PAYABLE, & PAYROLL
LIABILITIES
DEBT FINANCING – SHORT TERM AND LONG TERM
Learning Objectives:
Develop knowledge on characteristics and classification of liabilities and short-term debt, show ability to use
FASB codification, master the elements of debt financing: notes payable, lines of credit, and long-term debt,
compute present value of long-term debt.
Lectures:
L 1.1: Liabilities and Short-Term Debt
L 1.2: Notes Payable, Lines of Credit, and Long-Term Debt
L 1.3: Present Value of Long-Term Debt
SHORT TERM LIABILITIES – PAYROLL
Learning Objectives:
Understand the concepts of payroll withholdings and payroll taxes for short-term liabilities, demonstrate
computational ability for payroll withholdings and payroll taxes, analyze the implications of compensated
absences.
Lectures:
L 2.1: Payroll Withholdings and Taxes
L 2.2: Payroll Withholdings and Taxes - Examples
L 2.3: Compensated Absences
Homework:
Module 1 Homework
Quiz:
Module 1 Quiz
| WEEK 2
MODULE 2: DEBT FINANCING – BONDS, ISSUING PREMIUMS, & DISCOUNTS
DEBT FINANCING – BONDS
Learning Objectives:
Identify the advantages and disadvantages of bonds, master essential bond terms, understand the principles
of financing with bonds, recognize the different selling prices of bonds: par, premium and discount, develop
knowledge on issuance of bonds.
Lectures:
L 3.1: Financing with Bonds
L 3.2: Essential Bond Terms
L 3.3: Issuance of Bonds
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COURSE OUTLINE
DEBT FINANCING – METHODS AND PREMIUMS
Learning Objectives:
Analyze the implications of bond issue costs, bonds issued between interest dates, and straight line method,
compute and assess the premium and discount effect on statement of cash flows, understand the usefulness
of retiring bonds at maturity, test knowledge of bonds with debt ratio calculations.
Lectures:
L 4.1: Bond Issue Costs and Straight Line Method
L 4.2: Premium and Discount Effect on Statement of Cash Flows
L 4.3: Retirement of Bonds at Maturity and Debt Ratio
Homework:
Module 2 Homework
Quiz:
Module 2 Quiz
| WEEK 3
MODULE 3: DEBT FINANCING – EXTINGUISHMENT OF DEBT, CONVERTIBLE BONDS, & BOND
REFINANCING
DEBT FINANCING – EXTINGUISHMENT OF DEBT PRIOR TO MATURING
Learning Objectives:
Evaluate purchase and call for the retirement of bonds before maturity, identify the useful features of issuance
and conversion of convertible bonds, define bonds refinancing, test computational skills of bond refinancing,
analyze useful techniques for off-balance-sheet financing.
Lectures:
L 5.1: Retirement of Bonds before Maturity
L 5.2: Convertible Bonds
L 5.3: Bond and Off Balance Sheet Financing
DEBT FINANCING – TROUBLED DEBT RESTRUCTURING
Learning Objectives:
Assess the proceedings of troubled debt restructuring and transfer of assets in full settlement, compute and
prepare journal entry for grant of equity interest (equity swap), understand the various way debt terms have
the ability to be modified to aid a debtor.
Lectures:
L 6.1: Troubled Debt Restructuring and Transfer of Assets in Full Settlement
L 6.2: Troubled Debt Restructuring and Equity Swap
L 6.3: Troubled Debt Restructuring and Modification of Debt Terms
Homework:
Module 3 Homework
Quiz:
Module 3 Quiz
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COURSE OUTLINE
| WEEK 4
MODULE 4: CONTINGENCIES & LEASE ACCOUNTING
CONSTINGENCIES INCLUDING WARRANTIES
Learning Objectives:
Analyze the essential components of contingencies: losses & liabilities, lawsuits, premiums & coupons, and
warranties, demonstrate knowledge of the obligations for environmental liabilities, calculate liability for
premiums & coupons.
Lectures:
L 7.1: Losses & Liabilities and Lawsuits
L 7.2: Environmental Liabilities
L 7.3: Warranties and Premiums & Coupons
INTRODUCTION TO LEASES
Learning Objectives:
Differentiate the role between lessee and lessor, identify key accounting issues for lessor, understand the
various types of leases, master lease contract provisions along with the general classification criteria for
lessee and lessor, demonstrate accounting skills for operating leases.
Lectures:
L 8.1: Lease vs. Purchase & Types of Leases
L 8.2: Lease Contract Provisions & General Classification Criteria
L 8.3: Operating Lease & Review
Homework:
Module 4 Homework
Quiz:
Module 4 Quiz
| WEEK 5
MODULE 5: LESSEE VS LESSOR
LEASES – LESSEE
Learning Objectives:
Demonstrate accounting ability when making calculations for capital leases, understand accounting principles
for leases with a bargain purchase option, and assess the treatment of leases on lessee’s statement of cash
flows.
Lectures:
L 9.1: Problem & Capital Lease
L 9.2: Bargain Purchase Option
L 9.3: Treatment of Leases on Lessee’s Statement of Cash Flows
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COURSE OUTLINE
LEASES – LEASOR
Learning Objectives:
Develop knowledge on the economic advantages of a lessor, engage in payment computations for a lessor,
understand the classification of leases by the lessor, analyze the facets of sales-type leases, initial direct
costs, and sale-leasebacks, demonstrate accounting skills to solve problems using lessee and lessor
principles.
Lectures:
L 10.1: Leasing Advantages, Payment Computation, Classification & Operating Lease
L 10.2: Sales-Type Leases and Direct/Indirect Costs
L 10.3: Lessee & Lessor Example
Homework:
Module 5 Homework
Quiz:
Module 5 Quiz
Exam:
Cumulative Final Exam
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