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Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year: a. On January 10, purchased merchandise on credit for $26,000. The company uses a perpetual inventory system. b. On March 1, borrowed $56,000 cash from City Bank and signed a promissory note with a f a face amount of $56,000, due at the end of six months, accruing interest at an annual rate of 7.00 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. 2. What amount of cash is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $460,000 in total liabilities and $660,000 in total assets, yielding a debt-to-assets ratio of 0.70, prior to each transaction.

Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year: a. On January 10, purchased merchandise on credit for $26,000. The company uses a perpetual inventory system. b. On March 1, borrowed $56,000 cash from City Bank and signed a promissory note with a f a face amount of $56,000, due at the end of six months, accruing interest at an annual rate of 7.00 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. 2. What amount of cash is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $460,000 in total liabilities and $660,000 in total assets, yielding a debt-to-assets ratio of 0.70, prior to each transaction.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount of cash is paid on the maturity date of the note? Cash Paid Required 3 ja. b. < Required 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $460,000 in total liabilities and $660,000 in total assets, yielding a debt-to-assets ratio of 0.70, prior to each transaction. (Round your answers to 2 decimal places.); Impact Required 3 Required 3 > < Required 2 Required 3>
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount of cash is paid on the maturity date of the note? Cash Paid Required 3 ja. b. < Required 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $460,000 in total liabilities and $660,000 in total assets, yielding a debt-to-assets ratio of 0.70, prior to each transaction. (Round your answers to 2 decimal places.); Impact Required 3 Required 3 > < Required 2 Required 3>
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year. a. On January 10, purchased merchandise on credit for $26,000. The company uses a perpetual inventory system. b. On March 1, borrowed $56,000 cash from City Bank and signed a promissory note with a face amount of $56,000, due at the end of six months, accruing interest at an annual rate of 7.00 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. 2. What amount of cash is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $460,000 in total liabilities and $660,000 in total assets, yielding a debt-to-assets ratio of 0.70, prior to each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to assets, liabilities, or stockholders equity w Liabilities Date January 10 March 1 Assets = Required 2 > Stockholders' Equity
Transcribed Image Text:Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year. a. On January 10, purchased merchandise on credit for $26,000. The company uses a perpetual inventory system. b. On March 1, borrowed $56,000 cash from City Bank and signed a promissory note with a face amount of $56,000, due at the end of six months, accruing interest at an annual rate of 7.00 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. 2. What amount of cash is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $460,000 in total liabilities and $660,000 in total assets, yielding a debt-to-assets ratio of 0.70, prior to each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to assets, liabilities, or stockholders equity w Liabilities Date January 10 March 1 Assets = Required 2 > Stockholders' Equity
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