Restructuring Debt Long-term debt on the balance of a company is important, it indicates the amount that the company owes and does not expect to pay off in the next year. Part A of the report discusses long-term debt including bonds payable, notes payable, mortgage notes payable, and capital leases. In part B, there are journal entry to restructure debt (land) and a computation of pension plan. Part A includes bonds payable, notes payable, mortgage notes payable, and capital leases.
Bonds payable

Bonds represent an obligation to repay principle at a time in the future and interest, usually on a semi-annual. Bonds are issued to different investors who may sell their bonds to other investors prior to their maturity. Many different types of bonds are available to investors such as secured bonds (mortgage bonds, collateral trust bonds), unsecured bonds (debenture bonds), serial bonds, convertible bonds, and callable bonds. The bond’s price is based on the market’s assessment of risk associated with the company that sells the bonds. Bonds are issues on an interest payment date at face value, the company accrued no interest, no premium or discount exists. The company records the cash proceeds and the face value of the bonds. Bonds issued with a coupon interest rate higher than the market interest are considered to be offered at a premium. In contrast, bonds are issued at a discount when the coupon interest rate is below the market interest rate. For example, the company issues bonds $500,000 at par value, 10 years, interest rate 10% payable at semiannually on Jan 01 and July 01
Bonds are issued at par value Cash $500,000 Bond Payable $500,000
July 01

Bond interest expense ((500,000 x 10%) x 6/12) $ 25,000 Cash