Intermediate Accounting, 17th Edition
17th Edition
ISBN: 9781119503682
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.
The total debt ratio of 2018 and 2019?
The following schedule of NY company’s outstanding liabilities as of December 31, 2016 provided as follows:
Accounts payables and accruals P 900,000
6% notes payables – due February 1, 2017 1,000,000
8% loan payable – due February 15, 2017 1,500,000
10% loan payable – due march 1, 2017 2,000,000
The following information was provided at the time the 2016 financial statements were being prepared:
The 6% note includes a clause that allows NY Company to reschedule the note’s maturity date for a maximum period of 2 years from the date of maturity.
The 8% loan includes a stipulation that NY company’s debt to equity ratio should not be higher than 0.40 at all times, otherwise the entire loan would be demandable immediately. At December 1, 2016, NY Company’s debt to equity was 0.45. Management intends to seek a waiver from Yankees finance company with an assurance…
Fleener Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2016, and its financial statements will be issued on March 15, 2017. Under current IFRS, how would the debt be classified if the refinancing is completed on December 15, 2016? What if instead it is completed on January 15, 2017?
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- The following items were identified to comprise CHI company’s liabilities as of December 31, 2016 Accounts payable P500,000 6% notes payable – due January 15, 2017 750,000 7% notes payable – due January 31, 2017 1,200,000 8% notes payable – due January 31, 2017 1,500,000 The following information was made available at the time the 2016 financial statements were being prepared: The accounts payable balance included a P150,000 advance from the company’s president which is due on June 30, 2018 The board decided unanimously that it would refinance its 6% notes from bulls lending company. On December 31, 2016. CHI Company completed an agreement with bears financing company to refinance its existing note 7% with another one maturing on January 31, 2018. At January 2, 2017 CHI company completed an agreement with cubs financing company rescheduling the maturity date of the 8% notes to January 31, 2018 How much is the total…arrow_forwardThe following items were identified to comprise CHI company’s liabilities as of December 31, 2016 Accounts payable P500,000 6% notes payable – due January 15, 2017 750,000 7% notes payable – due January 31, 2017 1,200,000 8% notes payable – due January 31, 2017 1,500,000 The following information was made available at the time the 2016 financial statements were being prepared: The accounts payable balance included a P150,000 advance from the company’s president which is due on June 30, 2018 The board decided unanimously that it would refinance its 6% notes from bulls lending company. On December 31, 2016. CHI Company completed an agreement with bears financing company to refinance its existing note 7% with another one maturing on January 31, 2018. At January 2, 2017 CHI company completed an agreement with cubs financing company rescheduling the maturity date of the 8% notes to January 31, 2018. Requirement: a). How…arrow_forwardThe chief accountant of KYB Ltd has prepared and presented the following schedule for long term debt for the audit of financial statements for the year ended March 31, 2020: Notes Payable Description Interest Rates Maturity Date Opening Balance Additions Payments to date Closing Balance Mortgage Payable 4.5% 2050 2,415,886 172,757 2,588,643 Unsecured Notes Payable 5.5% 2030 5,879,800 850,000 5,029,800 Secured Bonds 5.75% 2021 6,228,000 1,272,000 7,500,000 Convertibles Debentures 3.5% 2025 3,500,000 3,500,00 Total 14,520,686 4,944,757 850,000 18,615,443 Required: Describe substantive procedures the auditor should perform to confirm the transactions in the schedule above for the year-end.arrow_forward
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- Dear Bartleby could you please calculate the debt equity ratio for the following, thank you. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 650 $ 900 $ 700 Other assets 2,750 2,050 1,750 Total assets $ 3,400 $ 2,950 $ 2,450 Current liabilities $ 500 $ 800 $ 700 Long-term liabilities 1,500 1,000 800 Stockholders' equity 1,400 1,150 950 Total liabilities and stockholders' equity $ 3,400 $ 2,950 $ 2,450 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data:…arrow_forwardREQUIRED Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The time taken by the company to settle its debts with trade The amount of debt that the company uses to finance its The operational effectiveness of the company before considering interest income, interest expense and company tax. The percentage of the profit that has been put back into the What investors are willing to pay for the shares of the company with due consideration given to the profit generated by each share in the company. Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average provided in the additional information. INFORMATION The information given below was extracted from the books of Oslo Limited:…arrow_forwardByrd Company had the following transactions during 2019 and 2020: 1. Prepare the journal entries for Byrd for both 2019 and 2020. Assume that the net price method is used to account for the credit terms. 2. Show how the preceding items would be reported in the current liabilities section of Byrd’s December 31, 2019, balance sheet. 3. Next Level Assuming Byrd’s current assets were $1,200,000 and its current ratio was 2.4 at the end of 2018, compute the current ratio at the end of 2019 (based solely on the effects of the preceding transactions).arrow_forward
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