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    Comparison of current reporting for bond, morgage, capital lease

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    Provide your manager a comparison of the current reporting for debt, explaining the requirements for each type (bond, mortgage, capital lease, and others).

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    Restructuring Debt:

    Restructuring of debt is a method used in organizations with financial problems where the rates to pay for debts are reduced and the time for paying these debts are increased. The organizations in this situation negotiate its delinquent debts with the lenders or investors and borrow funds from them so as to restore or improve the liquidity of the assets. There are a two method of restructuring debt i.e. long term methods and short term financing methods of restructuring debts. These methods entail the use of mortgages, bonds, capital leases among other methods used to improve the operation of the organization (Gordon, 2006).

    The current reporting for debt occurs in the liabilities section of the balance sheet. These liabilities are divided into two i.e. the current liabilities that includes the notes payable, interest payable, warranty liabilities etc and the long term liabilities that includes mortgages outstanding, capital lease obligation etc. When a company is restructuring debts in the organization, it can use mortgages so as to borrow funds. Mortgages are collaterals of real property ...

    Solution Summary

    A comparison of current reporting for bonds, mortgage and capital leases are examined.