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?
-
Tattle Company engaged in the following transactions in October 2010: Oct. 7 Sold merchandise on credit to Lina Ortiz, terms n/30, FOB shipping point, $6,000 (cost, $3,600). 8 Purchased merchandise...
-
Find the position functions x 1 (t) and x 2 (t) of the railway cars of Fig. 7.5.2 if the physical parameters are given by and the initial conditions are How far do the cars travel before stopping? m...
-
The velocity in a certain flow field is given by the equation \[ \mathbf{V}=x \hat{\mathbf{i}}+x^{2} z \hat{\mathbf{j}}+y z \hat{\mathbf{k}} \] Determine the expressions for the three rectangular...
-
Frank Rare Coins (FRC) was formed on January 1, 2016. Additional data for the year follow: a. On January 1, 2016, FRC issued no par common stock for $450,000. b. Early in January, FRC made the...
-
4. (4) Suppose r is the position function of a particle moving through space parameterized in terms of arc lengths and r'(s) = v(s) = . Find the curvature of the particle's path after the particle...
-
Six observed hadrons have the quantum numbers (Q, B, S, C, B) = (2, 1, 0, 1, 0), (0, 1,2, 1, 0), (0, 0, 1, 0,1), (0,1, 1, 0, 0), (0, 1,1, 1, 0) and (1, 1,3, 0, 0), respectively. Identify their quark...
-
A business bought two automatic blind tubular machines producing fasteners on 1 January 2018 at a cost of Rs 15 000 each. Each machine had an estimated life of 5 years and a nil residual value. The...
-
5. Suppose a block slides horizontally across the floor. The acceleration of the block as a function of time is shown below: a (m/s) 4 2 -2 1 2 3 4 5 t (s) 6 Using * = 0 and = 0 at t = 0 plot the...
-
2.22 Convert each of the following expressions into sum of products and product of sums: (a) (u+xw)(x+u'v) (b) x' + x(x + y')(y + z')
-
1. Draw binary expression trees for the following infix expressions. Your trees should enforce the Java rules for operator evaluation (higher-precedence operators before lower- precedence operators...
-
Distributed computing is for (a) Resource sharing; (b) Fault-tolerance; (c) Computing speed; (d) Green computing? Could you please write what is the answer and explain it in detail?
-
Distributed computing provides a means for complex problems to be solved efficiently and quickly by dividing the work among the processors in the system. This concept is interesting because of its...
-
A company issues a bond on the 1st January with a nominal amount of 100 and coupons payable quarterly in arrears at a rate of 8% per annum. The bond may be redeemed at 125 per 100 nominal on any...
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
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.
-
Can you name five types of channels of communication?
-
How would you define your own leadership style? Do you have examples you can share with others on how you lead when called on?
-
Revisit the definition of strategic communication and then review the vignette at the beginning of the chapter. Match the different terms in the definition to the different entities in the vignette.
Study smarter with the SolutionInn App