BE 256
Franco Corporation reports the following selected financial statement information at December 31, 2011:
Total Assets$110,000
Total Liabilities65,000
Net Income1,800
Interest Revenue600
Interest Expense900
Income Tax Expense300
Instructions
Calculate the debt to total assets and times interest earned ratios.
a
BE 257
On January 1, 2014, Fabian Enterprises issued 9%, 10-year bonds with a face amount of $1,500,000 at 96. Interest is payable semiannually on June 30 and December 31. The bonds were issued for an effective interest rate of 10%.
Instructions
Prepare the entries to record the issuance of the bonds and the first semiannual interest payment assuming that the company uses effective-interest amortization.
a
BE 258
On January 1, 2014, Halston Enterprises issued 8%, 20-year bonds with a face amount of $3,000,000 at 101. Interest is payable semiannually on June 30 and December 31.
Instructions
Prepare the entries to record the issuance of the bonds and the first semiannual interest payment assuming that the company uses straight-line amortization.