Question: whether the transaction described will immediately increase (1), decrease (D) or have no effect ONE For questions 8 and 9, provide the journal entry

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

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