whether the transaction described will immediately increase (1), decrease (D) or have no effect ONE For...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
whether the transaction described will immediately increase (1), decrease (D) or have no effect ONE For questions 8 and 9, provide the journal entry for the transaction described and then indicate on the ratios shown. Assume each ratio is more than 1.0 before the action is taken. 8. Grande Co. made a payment of $4,000,000 for principal on a 1 year bank loan. Debit Credit Account Effect on ratio (I, D or NE?) Current Ratio Effect on ratio (I, D or NE?) 9. Olvera Co. purchased $200,000 of equipment by signing a 3 year note. Account Debit Acid test (quick) ratio Current Ratio Debt to Equity Ratio Credit Debt to Equity Ratio whether the transaction described will immediately increase (1), decrease (D) or have no effect ONE For questions 8 and 9, provide the journal entry for the transaction described and then indicate on the ratios shown. Assume each ratio is more than 1.0 before the action is taken. 8. Grande Co. made a payment of $4,000,000 for principal on a 1 year bank loan. Debit Credit Account Effect on ratio (I, D or NE?) Current Ratio Effect on ratio (I, D or NE?) 9. Olvera Co. purchased $200,000 of equipment by signing a 3 year note. Account Debit Acid test (quick) ratio Current Ratio Debt to Equity Ratio Credit Debt to Equity Ratio
Expert Answer:
Answer rating: 100% (QA)
Journal Entry Debit Bank Loan 4000000 Credit Cash 4000000 Effect on ratio ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Assume Monsanto Company, a leading global chemical manufacturer, enters into the following transactions during 2016. 1. Purchased inventory on account. 2. Purchased plant machinery by issuing...
-
Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or...
-
For light that originates within a liquid and strikes the liquid-air interface, the critical angle is 39. What is Brewster's angle for this light?
-
How would you use a Grignard reaction on an aldehyde or ketone to synthesize the following compounds? (a) 2-Pentanol (b) 1-Butanol (c) 1-Phenylcyclohexanol (d) Diphenyl methanol
-
What is a nonlinear cost function, and in what ways do learning curves give rise to nonlinear costs?
-
Harnischfeger Corporation was a mining machinery and equipment company based in Wisconsin. The company voluntarily changed its depreciation accounting policy from the accelerated method to the...
-
How might the result in this case have been different if the court had admitted the Wagners evidence of the Love Song contract?
-
uestion 1 Item Annual Usage Cost($) Annual Dollar Usage Rank A1 40,000 0.17 [1] [11] A2 95,000 0.21 [2] [12] A3 14,000 0.10 [3] [13] A4 10,000 0.05 [4] [14] A5 2,000 0.34 [5] [15] A6 100,000 0.11 [6]...
-
Gail and her husband have a son when her husband dies unexpectedly on January 1, 2022. Gail asks you, her tax professional, how her husbands death affects her taxes. Determine Gails income tax each...
-
Select the correct answer A-3 B-1 C -7 D-6 E-8 BUDE Answer this question The signum function sgn(x) is defined as shown in the figure. It extracts the sign of a real number and avoids the possibility...
-
The number of files on a computer In Exercises 1524, determine whether the data described are qualitative or quantitative.
-
In a case-control study, the outcome has occurred before the subjects are sampled. In Exercises 1116, determine whether the statement is true or false. If the statement is false, rewrite it as a true...
-
In a cross-sectional study, measurements are made at only one point in time. In Exercises 1116, determine whether the statement is true or false. If the statement is false, rewrite it as a true...
-
Your best friends age. In Exercises 1524, determine whether the data described are qualitative or quantitative.
-
A pharmaceutical company wants to test a new drug that is designed to provide superior relief from headaches. They want to select a sample of headache sufferers to try the drug. Do you think that it...
-
Question 1: Answer the prompt below: Prompt: Consider a family you have seen in media, real or fictional (for example The Obamas or The Simpsons). Using what you read about the four types of family...
-
The packaging division of a company having considered several alternative package designs for the company's new product has finally brought down their choices to two designs of which only one has to...
-
The financial statements of Resolute Inc. are presented here: RESOLUTE INC. Statement of Financial Position December 31 RESOLUTE INC. Income Statement Year Ended December 31, 2015 Sales...
-
Blindleia Care Corporation had the following selected transactions in September: 1. Collected $200 cash from customers for services provided in August. 2. Collected $500 cash from customers for...
-
Give two examples of each kind of business activity: (a) Operating, (b) Investing, and (c) Financing.
-
It is common to see share prices of a company increase with the announcement of good news from the company. It is also the case that record earnings qualify as very good news. The behavior of stock...
-
On September 11, 2001, two American Airlines aircraft were hijacked and destroyed in terrorist attacks on The World Trade Center in New York City and the Pentagon in northern Virginia. As a...
-
Some members of the financial community allege that corporate managers manage their companys reported accounting results. Discuss the possible motivations behind this behavior.Can you envision a...
Study smarter with the SolutionInn App