George's Hamburgers issued 8%,10-year bonds payable at 75 on December 31, 2018. At December 31,2020, George reported the bonds payable as follows:

Long-term Liabilities:
Bonds Payable	$700,000
Less: Discount on Bonds Payable	(28,000)	$672,000

George's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.)

Requirements:

1.

Answer the following questions about George's bonds payable:

a.	What is the maturity value of the bonds?
b.	What is the carrying amount of the bonds at December 31,2020?
c.	What is the semiannual cash interest payment on the bonds?
d.	How much interest expense should the company record each year?

2.

Record the June 30,2020 semiannual interest payment and amortization of discount.

AND,

The accounting records of Path Leader Wireless include the following as of December 31,2018:

Accounts Payable	$74,000		Salaries Payable	$10,000
Mortgages Payable (long-term)	76,000		Bonds Payable (current portion)	24,000
Interest Payable	17,000		Premium on Bonds Payable	8,000
Bonds Payable (long-term)	62,000		Unearned Revenue (short-term)	3,200
Total Stockholders' Equity	165,000

PrintDone

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Requirements

1.	Report these liabilities on the Path Leader Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities
2.	Compute Path Leader Wireless's debt to equity ratio at December 31, 2018.

Requirement 1. Report these liabilities on the Path LeaderPath Leader Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities.

Path Leader Wireless
Balance Sheet (Partial)
December 31, 2018
	Plus:
Total Liabilities

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