GB518
unit 5 assignment - Reporting and analyzing current liabilities AND Accounting for corporations.
E9-4 E10-1 E10-16 E11-2 E11-15 GB518 unit 5 assignment - EXCEL TEMPLATE
E9-4 Perfect Systems borrows $94,000 cash on May 15, 2011, by signing a 60-day, 12% note.
1.
On what date does this note mature?
2. Suppose the face value of the note equals $94,000, the principal
of the loan. Prepare the journal entries
to record (a) issuance of the note and (b) payment of the note at maturity.
E10-1 On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,00 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.
1.
How much interest will Kidman pay (in cash) to
the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on
january 1, 2011 (b) the first interest payment in June 30, 2011 and (c ) the
second interest payment on december 31, 2011.
3. Prepare the journal entry for issuance assuming the bonds are
issued at (2) 98 and (b) 102.
E10-16 Ramirez Compnay is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000 and total assets of $620,000.
1.
Compute Ramirez's (a) present debt-to-equity
ratio and (b) the debt-to-equity ration assuming it borrows $500,000 to fund
the project.
2. Evaluate and discuss the level of risk involved if Ramirez
borrows the funds to pursue the project.
E11-2 Aloha Corporation issues 6,000 shares of its common stock for $144,000 cash on february 20. Prepare journal entries to record this event under each of the following separate situations.
1.
The stock has neither par nor stated value.
2. The stock has a $20 par value.
3. The stock has an $8 stated value.
E11-15 Compute the price-earnings ration for each of these four separate companies. Which stock might an analyst likely investigate as being potentially undervalued by the market? Explain.
Company
|
Earnings per Share
|
Market Value per Share
|
1
|
$ 10.00
|
$ 166.60
|
2
|
$ 9.00
|
$ 90.00
|
3
|
$ 6.50
|
$ 84.50
|
4
|
$ 40.00
|
$ 240.00
|
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