On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

The carrying (book) value of a bond payable is the par value of the bonds plus any discount or minus any premium.

Charger Company’s most recent balance sheet reports total assets of $27,000,000, total liabilities of $15,000,000 and total equity of $12,000,000. The debt to equity ratio for the period is (rounded to two decimals):

Recording employee payroll deductions may involve:

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value of the note on March 1? (Use 360 days a year.)

The carrying (book) value of a bond payable is the par value of the bonds plus any discount or minus any premium.

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines’ first year depreciation under the units-of-production method?

A company’s had fixed interest expense of $5,000, its income before interest expense and income taxes is $17,000, and its net income is $9,400. The company’s times interest earned ratio equals:

Recording employee payroll deductions may involve:

When a company constructs a building, the cost of the building includes materials and labor but not design fees, building permits, or insurance during construction.