Chunky Cheese Pizza has $61.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.22. Chunky’s total assets are $201.9 million, and its liabilities other than the bonds payable are $91.9 million. The company is considering some additional financing through leasing. 3. The company enters a lease agreement requiring lease payments with a present value of $6.9 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5).) Record a lease agreement. Transaction General Journal Debit Credit 01
Chunky Cheese Pizza has $61.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.22. Chunky’s total assets are $201.9 million, and its liabilities other than the bonds payable are $91.9 million. The company is considering some additional financing through leasing. 3. The company enters a lease agreement requiring lease payments with a present value of $6.9 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5).) Record a lease agreement. Transaction General Journal Debit Credit 01
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chunky Cheese Pizza has $61.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.22. Chunky’s total assets are $201.9 million, and its liabilities other than the bonds payable are $91.9 million. The company is considering some additional financing through leasing.
3. The company enters a lease agreement requiring lease payments with a present value of $6.9 million. Record the lease. (If no entry is required for a particular transaction/event, select "No
- Record a lease agreement.
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