Reporting liabilities on the balance sheet and computing debt to equity ratioThe accounting records of Compass Wireless include the following as of December 31, 2018:RequirementsReport these liabilities on the Compass Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities.Compute Compass Wireless’s debt to equity ratio at December 31, 2018. Accounts PayableMortgages Payable (long-term)$ 74,00080,000Salaries PayableBonds Payable (current portion)Premium on Bonds Payable$ 7,50025,00013,000Interest PayableBornds Payabie (long-term)Total Stockholders' Equity21,00063,000145,000Unearned Revenue (short-term)2,700

1. COMPASS POINT WIRELESSBalance sheet (partial) Particulars Amount Current…

Answered: Accounts Payable Mortgages Payable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Reporting liabilities on the balance sheet and computing debt to equity ratio

The accounting records of Compass Wireless include the following as of December 31, 2018:

Requirements

Report these liabilities on the Compass Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities.
Compute Compass Wireless’s debt to equity ratio at December 31, 2018.

Accounts Payable
Mortgages Payable (long-term)
$ 74,000
80,000
Salaries Payable
Bonds Payable (current portion)
Premium on Bonds Payable
$ 7,500
25,000
13,000
Interest Payable
Bornds Payabie (long-term)
Total Stockholders' Equity
21,000
63,000
145,000
Unearned Revenue (short-term)
2,700

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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