Search the web. e Account × y D Ch10HW × , J. Cole-- x-D CPCC Los x . D Pirate 3

Question

Search the web. e Account × y D Ch10HW × , J. Cole-- x-D CPCC Los x . D Pirate 365 x D Passphra xD ezto mhe XV Add or D Charles p Q Account X x x Cezto.mheducation.com/hm.tpx 2. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Tiger Company's debt-to-assets ratio is less than 1.0.) (Enter your answers in transaction order provided in the problem statement.) Jan. 3 Jan. 27 Apr. 1 June 13 July 25 Aug. 1 Dec. 31 Dec. 31 Dec. 31 References eBook & Resources Difficulty: 2 Medium PB10-1 Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Learning Objective: 10-02 Explain how to account for common types of current liabilities 7:38 PM wa e 7/9/2018

Explanation / Answer

SOLUTION

(A)

Interest expense=$81,000*6%*9/12 = $3,654

Date Assets Assets (Amount)($) + Liabilities Liabilities (Amount)($) = Stockholder's Equity Stockholder's Equity (Amount)($) Jan.3 Inventory +25,000 Accounts payable -25,000 Jan.27 Cash -25,000 Accounts payable +25,000 Apr.1 Cash +81,000 Notes Payable +81,000 June13 Inventory +8,200 Accounts payable +8,200 July 25 Cash -8,200 Accounts payable -8,200 Aug.1 Cash +8,200 Unearned rent received +8,200 Dec.31 Wages payable +13,000 Wages expense +13,000 Dec.31 Unearned revenue -8,200 Rent revenue -8,200 Dec.31 Interest payable +3,645 Interest expense +3,645

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.