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Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year a. On January 10, purchased merchandise on credit for $21,000. The company uses a perpetual inventory system. b. On March 1, borrowed $46,000 cash from City Bank and signed a promissory note with a face amount of $46,000, due at the end of six months, accruing interest at an annual rate of 6.50 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation 2. What amount of cast is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $360,000 in total liabilities and $560,000 in total assets, yielding a debt-to-assets ratio of 0.64, prior to each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to assets, liabilities, or stockholders eqi Stockholders' Equit Date January 10 March 1 Assets Liabilities Required 1- Required 2 >

Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year a. On January 10, purchased merchandise on credit for $21,000. The company uses a perpetual inventory system. b. On March 1, borrowed $46,000 cash from City Bank and signed a promissory note with a face amount of $46,000, due at the end of six months, accruing interest at an annual rate of 6.50 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation 2. What amount of cast is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $360,000 in total liabilities and $560,000 in total assets, yielding a debt-to-assets ratio of 0.64, prior to each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to assets, liabilities, or stockholders eqi Stockholders' Equit Date January 10 March 1 Assets Liabilities Required 1- Required 2 >

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 2PA: Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on...
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ok nces Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year. a. On January 10, purchased merchandise on credit for $21,000. The company uses a perpetual inventory system. b. On March 1, borrowed $46,000 cash from City Bank and signed a promissory note with a face amount of $46,000, due at the end of six months, accruing interest at an annual rate of 6.50 percent, payable at maturity, Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation 2. What amount of cast, is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $360,000 in total liabilities and $560,000 in total assets, yielding a debt-to-assets ratio of 0.64, prior to each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to assets, liabilities, or stockholders eqi Stockholders' Equit Assets Required 3 Date January 10 March 1 = + Liabilities Required 3- Required 2 >
Transcribed Image Text:ok nces Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year. a. On January 10, purchased merchandise on credit for $21,000. The company uses a perpetual inventory system. b. On March 1, borrowed $46,000 cash from City Bank and signed a promissory note with a face amount of $46,000, due at the end of six months, accruing interest at an annual rate of 6.50 percent, payable at maturity, Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation 2. What amount of cast, is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $360,000 in total liabilities and $560,000 in total assets, yielding a debt-to-assets ratio of 0.64, prior to each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to assets, liabilities, or stockholders eqi Stockholders' Equit Assets Required 3 Date January 10 March 1 = + Liabilities Required 3- Required 2 >
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