Southwest Airlines and Bond Accounting — Long-Term Liabilities, Debt Ratios, and Lease Reporting | Chapter 9 of Financial Accounting
Southwest Airlines and Bond Accounting — Long-Term Liabilities, Debt Ratios, and Lease Reporting | Chapter 9 of Financial Accounting How do corporations like Southwest Airlines finance major assets and manage long-term obligations? Chapter 9 of Financial Accounting (12th Edition) applies bond and liability accounting in a real-world context, exploring how companies issue, amortize, and report bonds — along with leases, taxes, and debt ratios. This blog post breaks down the chapter using Southwest Airlines as the featured case study. 🎓 Watch the full podcast summary above and subscribe to Last Minute Lecture for every chapter summary in Financial Accounting. How Companies Finance Long-Term Assets Chapter 9 begins by illustrating how firms like Southwest Airlines fund large investments—such as aircraft and infrastructure—using bonds payable . These bonds may be issued at: Par – face value Discount – below face value when the market rate exceeds the stated rate ...