144. Coca-Cola had income before interest expense and income taxes of $5,698 million and interest expense of $199 million. Calculate Coca-Cola's times interest earned ratio.
145. Walmart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million. Sears had income before interest expense and income taxes of $3,596 million and interest expense of $1,143 million. Calculate the times interest earned ratio for each company and comment on the results.
146. On November 1, 2012, Bob's Skateboards Store signed a $12,000, 3-month, 5% note payable to cover a past due account payable. This company uses a calendar year to report financial activity and updates the accounting records monthly.
a. What amount of total interest expense will the company pay on this note?
b. Prepare Bob's general journal entry to record the issuance of the note payable.
c. Prepare Bob's general journal entry to record the payment of the note on February 1, 2013.
147. On June 1, 2013, Martin Company signed a $25,000, 120-day, 6% note payable to cover a past due account payable. This company uses a calendar year to report financial activity.
a. What is the total amount of interest to be paid on this note?
b. Prepare Martin Company's general journal entry to record the issuance of the note payable,
c. Prepare Martin Company's general journal entry to record the payment of the note on
September 29, 2013 assuming no adjusting entries have been made since this note was first issued.
148. On September 15, Sports World borrowed $75,000 cash from First Bank on a 12%, 60-day note payable.
a. Prepare Sports World's general journal entry to record the issuance of the note payable.
b. Prepare Sports World's general journal entry to record the payment of the note at maturity assuming no adjusting entries have been made since the note was first issued.