Problem 14-7B

Chapter 14 Long-Term Liabilities end of the current year, the following information is available for both Atlas Company and Bryan Problem Applying the debt-to equity ratio A3 Atlas Company Bryan Company Total assets Total liabilities Total equity $180,000 80,000 100,000 $750,000 562,500 187,500 Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your results and discuss what they imply about the relative riskiness of these companies. Refer to the bond details in Problem 14-5B Problem 14 Effective Int Amortization discount P1 Check (2) S Required 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance. 2. Determine the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table like the one in Exhibit 14B.1 for the bonds' first two years. l the first two interest payments