Identify which accounting effect (a
through
e)occurs as a result of each transactionnumbered 1 through 6. You may use each letter more than once or not at all.
Accounting Effects
|
a.+ A and + L
|
b.+ A and – L
|
c.– A and – L and – SE
|
d.– A and – SE
|
e.– A and + L and – SE
|
____1.Issued a bond payable at a premium
____2.Issued a bond payable at a discount
____3.Issued a non-interest-bearing note at a discount
____4.Paid periodic interest and amortized discount to interest expense
____5.Paid periodic interest and amortized premium to interest expense
____6.Paid interest on bond payable which was issued at par
4.Identify the effect(s) on the debt/equity ratio (a
through
c)as a result of each transactionnumbered 1 through 6 below. You may use each letter more than once or not at all.
Effects
|
a. Increase in debt/equity ratio
|
b. Decrease in debt/equity ratio
|
c. Does not change debt/equity ratio
|
____1.Acquired the use of equipment under a capital lease
____2.Paid the interest portion of the payment on a capital lease
____3.Paid the principal portion of the payment on a capital lease
____4.Acquired the use of equipment under an operating lease
____5.Payment required on an operating lease