Modul ke: Fakultas Program Studi Pengantar Akuntansi II Review Stock, Bond and Partnership Reff. Warren Reeve and Fees. Nurul Hidayah, SE,Ak,MSi Hari Setiyawati,

Modul ke:

Fakultas

Program Studi

Pengantar Pengantar Akuntansi IIAkuntansi IIReview Stock, Bond and Partnership

Reff. Warren Reeve and Fees.

Nurul Hidayah, SE,Ak,MSi Hari Setiyawati , SE,Ak,MSi

14FEB

Akuntansi

Treasury stock is stock that:

• 1. has been issued as fully paid.

• 2. has been reacquired by the corporation.

• 3. has not been canceled or reissued.

• A commonly used method of accounting for treasury stock is the cost method.

Example : On January 5, a firm purchased 1,000 shares of treasury stock (common

stock, $25 par) at $45 per share.

Example : On January 5, a firm purchased 1,000 shares of treasury stock (common

stock, $25 par) at $45 per share.

Jan. 5 Treasury Stock 45 000 00

Purchased 1,000 shares of

treasury stock at $45.

Cash 45 000 00

Akuntansi untuk Deviden Kas

First is the date of declaration. Assume that on December 1, Hiber Corporation declares a

$42,500 dividend.

First is the date of declaration. Assume that on December 1, Hiber Corporation declares a

$42,500 dividend.

Dec. 1 Cash Dividends 42 500 00

Declared cash dividend.

Cash Dividend Payable42 500 00

Jurnal saat pengumuman :Jurnal saat pengumuman :

The second important date is the date of record. For Hiber

Corporation this would be December 11.

The second important date is the date of record. For Hiber

Corporation this would be December 11.

Tanggal saat dilakukan pencatatanTanggal saat dilakukan pencatatan

On this date, ownership of shares determines who receives the

dividend. No entry is required.

On this date, ownership of shares determines who receives the

dividend. No entry is required.

The third important date is the date of payment. On January 2, Hiber

issues dividend checks.

The third important date is the date of payment. On January 2, Hiber

issues dividend checks.

Tanggal sat pembayaran :

2

Jan. 2 Cash Dividends Payable 42 500 00

Paid cash dividends.

Cash 42 500 00

Tanggal Pembayaran :Tanggal Pembayaran :

Akuntansi untuk deviden sahamAkuntansi untuk deviden saham

A distribution of dividends to stockholders in the form of the firm’s own shares is called a

stock dividend.

A distribution of dividends to stockholders in the form of the firm’s own shares is called a

stock dividend.

Stock dividends transfer pro rata shares of stock to stockholders. Assume

Hendrix Corporation issues a 5% stock dividend on common stock, $20 par,

2,000,000 shares issued.

Stock dividends transfer pro rata shares of stock to stockholders. Assume

Hendrix Corporation issues a 5% stock dividend on common stock, $20 par,

2,000,000 shares issued.

Contoh transaksi dev. saham

Dec. 15 Stock Dividends 3,100 000 00

Declared stock dividend.

Hendrix Corporation, December 15 (before dividend)Common Stock, $20 par $40,000,000Paid-in Capital in Excess of Par--Common Stock 9,000,000Retained Earnings 26,600,000

Stock Dividends Distributable2,000000 00

Paid-in Capital in Excess of

Par—Common Stock1,100000 00

Jan. 10 Stock Dividends Distributable 2,000 000 00

Issued stocks for the stock

dividend.

Common Stock2,000000 00

On January 10, Hendix Corporation issues the stock. This action increases the number

of shares outstanding by 100,000.

Hendrix Corporation, December 15 (before dividend)

Common Stock, $20 par $40,000,000Paid-in Capital in Excess of Par--Common Stock 9,000,000Retained Earnings 26,600,000

$75,600,000

Hendrix Corporation, January 10 (after dividend)

Common Stock, $20 par $42,000,000Paid-in Capital in Excess of Par--Common Stock 10,100,000Retained Earnings 23,500,000

$75,600,000

Analisis terhadap lap.keuAnalisis terhadap lap.keuAnalisis terhadap lap.keuAnalisis terhadap lap.keu

Dividend YieldDividend YieldDividend YieldDividend Yield

2004 2003Dividends per share of common $ 0.80 $ 0.60Market price per share of common $20.50 $13.50

Dividends per Share of Common Stock

Market Price per Share of Common StockDividend YieldDividend YieldDividend YieldDividend Yield

$.60

$13.50Dividend Yield, 2006Dividend Yield, 2006Dividend Yield, 2006Dividend Yield, 2006 = 4.4%

Dividend Yield, 2007Dividend Yield, 2007Dividend Yield, 2007Dividend Yield, 2007$.80

$20.50= 3.9%

Use: To indicate the rate of return to common stockholders in terms of dividends

Use: To indicate the rate of return to common stockholders in terms of dividends

Paid-in capital:

Preferred 10% stock, $50 par,

cumulative (2,000 shares

authorized and issued) $100,000

Excess of issue price over par 10,000 $ 110,000

Common stock, $20 par

(50,000 shares authorized, 45,000

issued) $900,000

Excess of issue price over par 190,000 1,090,000

From sale of treasury stock 2,000

Total paid-in capital $1,202,000

Retained earnings 350,000

Total $1,552,000

Deduct treasury stock (600 shares at cost) 27,000

Total stockholders’ equity $1,525,000

Stockholders’ Equity61

Dua cra untuk melakukan pendanaan :Dua cra untuk melakukan pendanaan :Dua cra untuk melakukan pendanaan :Dua cra untuk melakukan pendanaan :

Stockholders’Equity

Assets

Liabilities

pendanaan dg menjual saham: Stockholders

pendanaan dg hutang : Bondholders

Bondholders

Bonds (debt)—Interest payments to bondholders are an expense that reduces taxable income.

Stock (equity))—Dividend payments are made from after tax net income and retained earnings. Earnings per share on common stock can often be increased by issuing bonds rather than additional stock.

Stockholders

Two Methods of Long-Term FinancingTwo Methods of Long-Term FinancingTwo Methods of Long-Term FinancingTwo Methods of Long-Term Financing

Alternatif pendanaan dg konsekuensinya :Alternatif pendanaan dg konsekuensinya :Plan 1 Plan 2 Plan 3

12 % bonds — — $2,000,000Preferred 9% stock, $50 par — $2,000,000 1,000,000Common stock, $10 par $4,000,000 2,000,000 1,000,000Total $4,000,000 $4,000,000 $4,000,000Earnings before interest

and income tax $ 800,000 $ 800,000 $ 800,000Deduct interest on bonds — — 240,000

Income before income tax $ 800,000 $ 800,000 $ 560,000Deduct income tax 320,000 320,000 224,000

Net income $ 480,000 $ 480,000 $ 336,000Dividends on preferred stock — 180,000 90,000Available for dividends $ 480,000 $ 300,000 $ 246,000

Shares of common stock ÷400,000 ÷200,000 ÷100,000

Earnings per share $ 1.20 $ 1.50 $ 2.46

Jika laba yg di peroleh : $440,000 Jika laba yg di peroleh : $440,000 Plan 1 Plan 2 Plan 3

12 % bonds — — $2,000,000Preferred 9% stock, $50 par — $2,000,000 1,000,000Common stock, $10 par $4,000,000 2,000,000 1,000,000Total $4,000,000 $4,000,000 $4,000,000Earnings before interest

and income tax $ 440,000 $ 440,000 $ 440,000Deduct interest on bonds — — 240,000

Income before income tax $ 440,000 $ 440,000 $ 200,000Deduct income tax 176,000 176,000 80,000

Net income $ 264,000 $ 264,000 $ 120,000Dividends on preferred stock — 180,000 90,000Available for dividends $ 264,000 $ 84,000 $ 30,000

Shares of common stock ÷400,000 ÷200,000 ÷100,000

Earnings per share $ 0.66 $ 0.42 $ 0.30

Karakteristik Hutang Obligasi :Karakteristik Hutang Obligasi :Karakteristik Hutang Obligasi :Karakteristik Hutang Obligasi :A bond contract is called a bond indenture or trust

indenture.

Long-term debt—repayable 10, 20, or 30 years after date of issuance.

Issued in face (principal) amounts of $1,000, or multiples of $1,000.

Contract interest rate is fixed for term (life) of the bond.

Face amount of bond repayable at maturity date.

When all bonds of an issue mature at the same time, they are called term bonds. If the maturity dates are spread over several dates, they are called serial bonds.

Bonds that may be exchanged for other securities are called convertible bonds.

Bonds that a corporation reserves the right to redeem before maturity are callable bonds.

Bonds issued on the basis of the general credit of the corporations are debenture bonds.

Present-Value untuk hutang Present-Value untuk hutang obligasi :obligasi :

Present-Value untuk hutang Present-Value untuk hutang obligasi :obligasi :

MARKET RATE = CONTRACT RATE

Sell price of bond = $1,000

$1,00010% payable

annually

MARKET RATE > CONTRACT RATE

Sell price of bond < $1,000

–Discount

$1,00010% payable

annually

The Present-Value Concept The Present-Value Concept and Bonds Payableand Bonds Payable

The Present-Value Concept The Present-Value Concept and Bonds Payableand Bonds Payable

MARKET < CONTRACT RATE

Sell price of bond > $1,000

+Premium

$1,00010% payable

annually

A $1,000, 10% bond is purchased. It pays interest annually and will mature in two years.

Today End of Year 1

End of Year 2

Interest payment

$100Interest payment

$100

$90.91 $100 x 0.90909

$1,00010%

payable annually

$82.65 $100 x 0.82645

$1,000 x 0.82645$826.45

$1,000.00 (rounded)

Present value of face value of $1,000 due in 2 years at 10% compounded annually:$1,000 x 0.82645 $ 826.45

Present value of 2 annual interest paymentsof 10% compounded annually: $100 x 1.73554 (PV of annuity of $1 for 2 yearsat 10%) 173.55

Total present value of bonds $1,000.00

Akuntansi untuk hutang obligasiAkuntansi untuk hutang obligasiAkuntansi untuk hutang obligasiAkuntansi untuk hutang obligasi

On January 1, 2005, a corporation issues for cash $100,000 of 12%, five-year bonds; interest payable semiannually. The market rate of interest is 12%.

Present value of face amount of $100,000 due in 5

years at 12% compounded annually: $100,000 x 0.55840$ 55,840

Present value of 10 interest payments of $6,000

compounded semiannually: $6,000 x 7.3609 (PV of annuity of $1 for 10 periods at 6%) 44,160

Total present value of bonds$100,000

On January 1, 2005, a corporation issues for cash $100,000 of 12%, five-year bonds; interest payable

semiannual. The market rate of interest is 12%.

Jan. 1 Cash 100 000 00

Issued $100,000 bonds

payable at face amount.

Bonds Payable 100 000 00

2005

Accounting for Bonds PayableAccounting for Bonds PayableAccounting for Bonds PayableAccounting for Bonds Payable

On June 30, an interest payment of $6,000 is made ($100,000 x .12 x 6/12).

June 30 Interest Expense 6 000 00

Paid six months’ interest on

bonds.

Cash 6 000 00

Bonds Issued at Face Amount

Alternative Forms of Business EntitiesAlternative Forms of Business EntitiesAlternative Forms of Business EntitiesAlternative Forms of Business Entities

Disadvantages• Limited life• Unlimited liability• Co-ownership of

partnership property• Mutual agency

Joe and Marty’s

A partnership is an association of two

or more individuals.

A partnership is an association of two

or more individuals.


An important right of partners is to participate in

the income of the partnership.

An important right of partners is to participate in

the income of the partnership.


Each partner must report their share of partnership income on their personal

tax returns.

Each partner must report their share of partnership income on their personal

tax returns.


A partnership is created by a contract, known as

the partnership agreement or articles of

partnership.

A partnership is created by a contract, known as

the partnership agreement or articles of

partnership.


A variant of the regular partnership

is a limited partnership.

A variant of the regular partnership

is a limited partnership.

This form of partnership allows partners that are

not involved in the operations of the

partnership to retain limited liability.

This form of partnership allows partners that are

not involved in the operations of the

partnership to retain limited liability.

Forming a PartnershipForming a Partnership Forming a PartnershipForming a Partnership

Joseph Stevens and Earl Foster agree to combine their hardware businesses in a partnership. They

agree that the partnership is to assume the liabilities of the separate businesses.

Joseph Stevens and Earl Foster agree to combine their hardware businesses in a partnership. They

agree that the partnership is to assume the liabilities of the separate businesses.

Apr. 1 Cash 7 200 00Accounts Receivable 16 300 00 Merchandise Inventory 28 700 00 Store Equipment 5 400 00Office Equipment 1 500 00

Allowance for Doubtful Accounts1 500 00Accounts Payable2 600 00Joseph Stevens, Capital55 000 00

Stevens’ Transfer of Assets, Liability, and Equity

Pembentukan PartnPembentukan Partnershipership Pembentukan PartnPembentukan Partnershipership

A similar entry would be made for the assets, liabilities, and

equity of Earl Foster.

A similar entry would be made for the assets, liabilities, and

equity of Earl Foster.

Assume that instead of forming a partnership, the two men formed a limited liability corporation.

Assume that instead of forming a partnership, the two men formed a limited liability corporation.

Apr. 1 Cash 7 200 00Accounts Receivable 16 300 00

Merchandise Inventory 28 700 00Store Equipment 5 400 00Office Equipment 1 500 00

Allowance for Doubtful Accounts1 500 00Accounts Payable2 600 00Joseph Stevens, Member Equity55 000 00

Stevens’ Transfer of Assets, Liability, and Equity

Services of PartnersServices of Partners

The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an annual salary allowance of $30,000 and Mills is to receive $24,000. Any net income is to be divided equally.

The firm had a net income of $75,000.

The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an annual salary allowance of $30,000 and Mills is to receive $24,000. Any net income is to be divided equally.

The firm had a net income of $75,000.

J. Stone C. Mills TotalSalary allowance $30,000 $24,000 $54,000Remaining income 10,500 10,500 21,000Division of net income $40,500 $34,500 $75,000


Dec. 31 Income Summary 75 000 00

Jennifer Stone, Capital40 500 00

Crystal Mills, Capital 34 500 00

LLC AlternativeLLC Alternative


Jennifer Stone, Member Equity40 500 00

Crystal Mills, Member Equity 34 500 00

Services of Partners and InvestmentsServices of Partners and Investments

The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an

annual salary allowance of $30,000 and Mills is to receive $24,000. Interest of 12% is provided on each partner’s capital balance on January 1. Any net income is to be divided equally. The

firm had a net income of $75,000.

The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an

annual salary allowance of $30,000 and Mills is to receive $24,000. Interest of 12% is provided on each partner’s capital balance on January 1. Any net income is to be divided equally. The

firm had a net income of $75,000.

Pembagian laba rugi Pembagian laba rugi Pembagian laba rugi Pembagian laba rugi

Services of Partners and InvestmentsServices of Partners and Investments

J. Stone C. Mills TotalSalary allowance $30,000 $24,000 $54,000Interest allowance 9,600 7,200 16,800

Division of net income $41,700 $33,300 $75,000$80,000 x

12%

$80,000 x 12%

$60,000 x 12%

$60,000 x 12%

Remaining income 2,100 2,100 4,200



Jennifer Stone, Capital41 700 00

Crystal Mills, Capital 33 300 00

LLC AlternativeLLC Alternative


Jennifer Stone, Member Equity41 700 00

Crystal Mills, Member Equity 33 300 00

Assume the same facts as before except that the net income is only $50,000.

Assume the same facts as before except that the net income is only $50,000.

J. Stone C. Mills TotalSalary allowance $30,000 $24,000 $54,000Interest allowance 9,600 7,200 16,800 Total $39,600 $31,200 $70,800

Division of net income $29,200 $20,800 $50,000Deduct excess equally 10,400 10,400 20,800

Munculnya partner baru :Munculnya partner baru :

1. Purchasing an interest from one or more of the current partners.

2. Contributing assets to the partnership.

A person may be admitted to a partnership only with the consent of all partners by:

Partnership DissolutionPartnership DissolutionPartnership DissolutionPartnership Dissolution

Purchasing an Interest in a PartnershipPurchasing an Interest in a Partnership

Partners Tom Andrews and Nathan Bell have capital balances of $50,000 each.

On June 1, each sells one-fifth of his equity to Joe Canter for $10,000 in cash.

Partners Tom Andrews and Nathan Bell have capital balances of $50,000 each.

On June 1, each sells one-fifth of his equity to Joe Canter for $10,000 in cash.


Purchasing an Interest in a PartnershipPurchasing an Interest in a Partnership

June 1 Tom Andrews, Capital 10 000 00

Nathan Bell, Capital 10 000 00

Joe Canter, Capital20 000 00

For a LLC, members’ equity accounts would have been used rather than capital accounts.

For a LLC, members’ equity accounts would have been used rather than capital accounts.


Contributing Assets to a PartnershipContributing Assets to a Partnership

Partners Donald Lewis and Gerald Morton have capital balances of $35,000 and

$25,000, respectively. On June 1, Sharon Nelson joins the partnership by

permission and makes an investment of $20,000 cash.

Partners Donald Lewis and Gerald Morton have capital balances of $35,000 and

$25,000, respectively. On June 1, Sharon Nelson joins the partnership by

permission and makes an investment of $20,000 cash.


Contributing Assets to a PartnershipContributing Assets to a Partnership

June 1 Cash 20 000 00

Sharon Nelson, Capital20 000 00

For a LLC, Sharon Nelson, Member Equity would have been credited.

For a LLC, Sharon Nelson, Member Equity would have been credited.

Contoh :Contoh :

Partners Donald Lewis and Gerald Morton have capital balances of $35,000 and $25,000, respectively. The balance in

Merchandise Inventory is $14,000 and the current replacement value is $17,000.

The partners share net income equally.

Partners Donald Lewis and Gerald Morton have capital balances of $35,000 and $25,000, respectively. The balance in

Merchandise Inventory is $14,000 and the current replacement value is $17,000.

The partners share net income equally.


June 1 Merchandise Inventory 3 000 00

Donald Lewis, Capital1 500 00

Gerald Morton, Capital1 500 00

Because the LLC alternative follows a pattern of replacing “Capital” with “Member Equity,”

the LLC entry will not be shown again.

Because the LLC alternative follows a pattern of replacing “Capital” with “Member Equity,”

the LLC entry will not be shown again.

Revaluation of AssetsRevaluation of Assets


Partner BonusesPartner Bonuses

On March 1, the partnership of Marsha Jenkins and Helen Kramer admit Alex

Diaz as a new partner. The assets of the old partnership are adjusted to a fair

market values and the resulting capital balances for Jenkins and Kramer are $30,000 and $24,000, respectively.

On March 1, the partnership of Marsha Jenkins and Helen Kramer admit Alex

Diaz as a new partner. The assets of the old partnership are adjusted to a fair

market values and the resulting capital balances for Jenkins and Kramer are $30,000 and $24,000, respectively.


Partner BonusesPartner Bonuses

Jenkins and Kramer agree to admit Diaz as a partner for $31,000. In return, Diaz

will receive a one-third equity in the partnership and will share income and

losses equally with Jenkins and Kramer.

Jenkins and Kramer agree to admit Diaz as a partner for $31,000. In return, Diaz

will receive a one-third equity in the partnership and will share income and

losses equally with Jenkins and Kramer.


Partner Bonuses from New PartnerPartner Bonuses from New Partner

Equity of Jenkins $20,000Equity of Kramer 24,000Diaz’s Contribution 31,000Total equity after admitting Diaz $75,000Diaz’s interest (1/3 x $75,000) $25,000

Diaz’s contribution $31,000Diaz’s equity after admission 25,000Bonus paid to Jenkins and Kramer $ 6,000

Terima KasihTerima KasihHari Setiyawati dan Nurul H

Documents

Modul ke: Fakultas Program Studi Pengantar Akuntansi II Review Stock, Bond and Partnership Reff. Warren Reeve and Fees. Nurul Hidayah, SE,Ak,MSi Hari Setiyawati,