FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Bonds payable, 12% (due in 15 years) | $1,247,416 |
Income before income tax for year | 401,495 |
Income tax for year | 120,449 |
Interest payable | 33,000 |
Interest receivable | 19,000 |
Interest expense | 149,690 |
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
a.0.88
b.3.68
c.1.88
d.2.68
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Current portion of long-term debtarrow_forward1c. Journalize the entries to record the 203 transactions. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar.arrow_forwardCompound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis) Annual rate for selected rates Days 1.00% 1.50% 1.25% 0.001370 0.002055 | 0.002740 0.003425| 0.004110 |0.004795 0.006849 0.50% 0.75% 1.75% 2.00% 2.25% 2.50% 0.005479 0.010959 1 0.006164 0.006849 0.002740 0.004110 0.006165 0.008219 0.009589 0.014384 0.005480 0.008219 0.012329 0.013699 3 0.004110 0.008219 0.010274 0.012329 0.016439 0.018494 0.020549 4 0.005480 0.010959 0.013699 0.016439 0.019179 0.021920 0.024660 0.027400 0.006850 0.010274 | 0.013699 0.008219 0.012329| 0.016439 0.014384 0.019180 0.021920 0.024660 0.017124 0.020550 0.023975 0.027400 0.034251 0.030826 0.036992 0.043159 0.049326 0.054808 0.024660 0.028771 6 0.020550 0.028771 0.032881 0.041103 7 0.010959 0.038362 0.043844 0.049326 0.009589 0.023975 0.033566 0.047955 0.016440 0.027401 0.032881 0.038363 0.018495 0.020550 0.022605 0.024660 0.017810 | 0.026716 9. 0.012329 0.030826 0.036992 0.043159 0.055493 0.061661 0.013699 0.015070…arrow_forward
- provide answer with full explanation ( only type )arrow_forwardCurrent portion of long-term debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: Total long term-debt Current portion December 31 Current Year C. $685,100 (198,700) $486,400 million December 31 Prior Year Long-term debt a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? $ $376,800 (185,000) $191,800 b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? million If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year? millionarrow_forwardIn the past year, Blossom Corporation reported assets of $230229000. Liabilities reported on the balance sheet on the same date were reported at $69091655. Blossom issued a new note payable for cash during the year. The 8%, 5-year note was issued at a face value of $5008000. What is the company's debt to asset ratio after the refinance? O 29.37% 31.50% 32.18% O 30.01%arrow_forward
- Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Shields Inc. issued $700,000 of 9%, 20-year bonds for $769,275, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show Excel inputs to confirm the bond issue price. Note: Round your answer to two decimal places. rate= nper pmt FV => Answer = $ b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and premium amortization on June 30 of the current year, and (3) semiannual interest payment and premium amortization on December 31 of the current year. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Note: Round your answers to the nearest whole dollar. Balance Sheet…arrow_forwardbalance sheet on december 31,year 1 and december 31year 2 are presented below: assets dec 31 year 1 dec 31 year 2 liabilites dec 31 year 1 dec 31 year 2 cash 50 000 60 000 trade accounts payable 62 000 49 000 accounts receivable 95 000 89 000 interest payable 8 000 11 000 allowance for uncollectible accounts (4 000) (3 000) bonds payables 200 000 200 000 inventory 120 000 140 000 unamortized bond discount (15 000) (10 000) property plant and equipment 295 000 340 000 Equity 199 000 257 000 accumlated depreciation (102 000) (119 000) total assets 454 000 507 000 total liabilities 454 000 507 000 additional information for year 2 : cash payents to suppliers of merchandise were 180 000 sales revenue was 338 000 3 000 of accounts receivables was written off equipment was acquired for 65 000 depreciation expense was 30 000 interest expenses was 20 000 based on the above information calculate the following : 1. the cost of goods sold year 2. 2.…arrow_forwardCable Company reported bond interest expense of $40,000 for the current year. During the year, the balance in the premium on bonds payable account decreased by $1,500. What was the amount of cash paid for interest expense during the year? Cash paid for interest expensearrow_forward
- On June 1, $40,000 of bonds were purchased between interest dates. The brokerage commission was $600. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. How much interest revenue will be recorded on July 1? Oa. $2,000 Ob. $2,400 Oc. $406 Od. $400arrow_forwardj1arrow_forwardGodoarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education