Reference no: EM13301366
Accounting for note payable
Perfect systems borrow $94,000 cash on May 15, 2011, by signing a 60-day, 12% note.
1. On what date does this note mature?
2. Suppose the face value of the note equals $94,000, the principal of the loan. Prepare the journal entries to record (a) insurance of the note and (b) payment of the note at maturity.
Recording bond issuance and interest
On Jan. 1, 2011, Kidman Enterprises issues bonds 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 to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on Jan. 1, 2011; (b) the first interest payment on June 30, 2011; and (c) the second interest payment on Dec. 31, 2011.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Applying debt to equity ratio
Ramirez Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000 and total assets 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.
Accounting for par, stated, and no-par stock issuances
Aloha Corporation issues 6,000 shares of its common stock for $144,000 cash on Feb 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 an $8 stated value.
Price-earnings ratio computation and interpretation
Compute the price-earnings ratio for each of the four separate companies. Which stock might an analyst likely investigate as being potentially undervalued by the market? Explain.
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Company
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Earnings per Share
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Market Value per Share
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1
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$10.00
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$166.00
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2
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$9.00
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$90.00
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3
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$6.50
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$84.50
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4
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$40.00
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$240.00
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Attachment:- Student-Template-Doc-Sharing-Corrected.xlsx
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What is the percentage change in price for each bond
: Immediately after she purchased them, interest rates fell and each then had a new YTM of 5%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Round your answers to two decimal p..
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Effect of operating characteristi on managerial decesion
: For the scenario in the attachment, use the queuing formulas to calculate the averages under present conditions and the alternatives. using the information given, determine the alternative you would select. List your assumptions and/or additional inf..
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Explain sulfuric acid to the solide mixture and solution
: What gas do you think forms when you add sulfuric acid to the solide mixture and solution. show with an equation
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How much money must you pay into an account at the beginning
: How much money must you pay into an account at the beginning of each of 20 years in order to have $10,000 at the end of the 20th year? Assume that the account pays 12% per year, and round to the nearest $1.
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Price-earnings ratio computation and interpretation
: Prepare journal entries to record (a) the issuance of bonds on Jan. 1, 2011; (b) the first interest payment on June 30, 2011; and (c) the second interest payment on Dec. 31, 2011.
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Explain benzoic acid precipitated when the aqueous solution
: Benzoic acid precipitated when the aqueous solution of sodium benzoate in beaker A was acidified. If benzoic acid failed to precipitate after acidification, how would you recover benzoic acid from beaker A
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Explain the acid-base reaction between benzoic acid
: Write a balanced equation for the acid-base reaction between benzoic acid and KOH. Using a pKa table, predict which way the equilibrium is favored.
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Determine the force on the bottom of the tank
: The water in a tank is at a gauge pressure of 241,504 Pa. If the bottom of the tank that has an area of 0.2 m2
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Which bond will have the greatest change in price
: If the required return changes by 15 percent, which bond will have the greatest change in price?
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