Question

Accounts Payable $76,000 Salaries Payable $7,000 Mortgages Payable (long-term) 77,000 Bonds Payable (current portion) 28,000 Interest...

Accounts Payable

$76,000

Salaries Payable

$7,000

Mortgages Payable (long-term)

77,000

Bonds Payable (current portion)

28,000

Interest Payable

15,000

Premium on Bonds Payable

12,000

Bonds Payable (long-term)

65,000

Unearned Revenue (short-term)

3,100

Total Stockholders' Equity

180,000

Requirements:

1.

Report these liabilities on the

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Wireless balance? sheet, including headings and totals for current liabilities and? long-term liabilities.

Compute
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?Wireless's debt to equity ratio at December? 31,
20182018. requirement 2

Homework Answers

Answer #1

Route Maker

Balance sheet (Liabilities only)

As at December 31, 2018

Liabilities $
Current liabilities:
Accounts payable 76,000
Bonds payable - current portion 28,000
Premium on bonds payable 12,000
Unearned revenue 3,100
Salaries payable 7,000
Interest payable 15,000
Total current liabilities 141,100
Long term liabilities
Mortgages payable 77,000
Bonds payable 65,000
Total long term liabilities 142,000
Total liabilities 283,100
Stockholders' equity 180,000
Total liabilities and Stockholders' equity 463,100

Debt to Equity ratio = Debt/Equity

= 283,100/180,000

= 1.57:1

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