Perfect systems borrow $94,000 cash on May 15, 2011, by signing a 60-day, 12% notes.
1. On what date this note mature
2. Suppose the face value of note equals $94,000, the principal of the loan. Prepare the journal entries to record (a) issuance of the note and (b) payment of the note at maturity.
Note round amounts to the nearest whole dollar; assume no reversing entries are used
On January 1, 2011, Kidman Enterprise issues a bond that have a $1,700,000 Par value, mature in 20 years and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.
1. How much interests will Kidman pay (in cash) to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on January 1, 2011; (b) The first interest payment on June 30, 2011; and (c) the second interest payment on December 31, 2011.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Ramirez Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $200,000 and total asset of $620,000
1. Compute Ramirez’s (a) present debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $500,000 to fund the project.
2. Evaluate and discuss the level of risk involved if Ramirez borrows the funds to pursue the project.
Aloha Corporation issues 6,000 shares of its common stock for $144,000 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
1. The stock has neither par nor stated value.
2. The stock has $20 par value
3. The stock has $8 stated value
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more