1.
If the Company C have recorded the loan agreement in its general ledger and the impact of this new loan agreement in the balance sheet of Company C during the year 2016 with explanation.
2.
To prepare: The entry to record the borrowing of Company F on July 1, 2018. And to find out the impact on its assets, liabilities and equity on that date.
3.
The interest expense accrued by Company F during the end of fiscal year 2018 and the impact of adjusting entry in the assets, liabilities and equity of Company F.
4.
The total interest expense related to the hypothetical borrowing for 2018.
5.
If the hypothetical borrowing in 2018 causes the Net Adjusted Leverage Ratio to increase. Decrease or stay the same with explanation.
6.
If the hypothetical borrowing in 2018 causes the EBITDAR Ratio to increase. Decrease or stay the same.
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Financial Accounting (12th Edition) (What's New in Accounting)
- The following are selected items from the accounting records of Atlanta Peach for the year ended December 31, 2011: I have attached information as a image. Other Information The note payable to Southern Bank is due in 60 days. Arrangements have been made to renew this note for an additional 24 months. The mortgage requires payments of $10,000 per month. An amortization table shows that its balance will be paid down to $733,000 by December 31, 2012. Accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January 2012. Atlanta Peach has been sued for $2,000,000 in a product damage case. It is not possible at this time, however, to make a reasonable estimate of the possible loss, if any, that the company may have sustained. Requirements: Using the information provided, prepare the current and long-term liability sections of the company’s balance sheet dated December 31, 2011. (Within each classification, items may be…arrow_forwardOn September 1, 2024, Triton Entertainment borrowed $24 million cash to fund a new Fun Park. The loan was made by Nevada Bank under a noncommitted short-term financing arrangement. Triton issued a 9-month, 12% promissory note. Interest was payable at maturity. Triton's fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Triton. 2. Prepare the appropriate adjusting entry for the note by Triton on December 31, 2024. 3. Prepare the journal entry for the payment of the note at maturity. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. No 1 Transaction 1 Cash Notes payable 2 2 Interest expense Notes payable 3 3 General Journal > > × Debit Credit 24,000,000 24,000,000 960,000 960,000arrow_forwardThe following selected transactions relate to liabilities of United Insulation Corporation. United’s fiscal year ends on December 31. 2024 January 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $34.0 million at the bank’s prime rate. February 1 Arranged a three-month bank loan of $10.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. December 1 Supported by the credit line, issued $19.0 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. December 31 Recorded any necessary adjusting entry(s). 2025 September 1 Paid the commercial paper at maturity. 1. Record the payment of the 10% note at maturity. 2. Record the issuance of $19.0 million of commercial paper on a nine-month note, supported by the…arrow_forward
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