Name and describe two kinds of leases.
Answer to relevant QuestionsWhich type of lease requires that a long-term debt and an asset be recorded at the inception of the lease? What does it mean if a bond is ‘‘convertible’’? EWO Enterprises issues $4,500,000 of bonds payable. Required: Prepare the necessary journal entries to record the issuance of the bonds assuming the bonds were issued (a) At par, (b) At 104.5, (c) At 99. Refer to the information for Sicily Corporation above. Sicily Corporation issued $500,000 in 6 percent bonds (payable on December 31, 2021) on December 31, 2011, for $402,440. Interest is paid on June 30 and December 31. The ...Red Corporation had $2,000,000 in total liabilities and $3,500,000 in total assets as of December 31, 2012. Of Red’s total liabilities, $350,000 is long-term. Required: Calculate Red’s debt to assets ratio and its ...
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