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General Journal Requirement General Ledger Debt to Assets Ratio Trial Balance Balance Sheet Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio. (Round your answer to 2 decimal places.) Calculate the debt-to-assets ratio at December 31. Debt to Assets Ratio % Does the company rely more (or less) on debt financing at the end of the year than at the beginning of the year? OMore Less

General Journal Requirement General Ledger Debt to Assets Ratio Trial Balance Balance Sheet Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio. (Round your answer to 2 decimal places.) Calculate the debt-to-assets ratio at December 31. Debt to Assets Ratio % Does the company rely more (or less) on debt financing at the end of the year than at the beginning of the year? OMore Less

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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Phantom Incorporated, reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Debit $5,000 267,000 15,000 Credit $ 30,000 110,000 2,000 0 10,000 15,000 120,000 $ 287,000 $ 287,000 The company entered into the following transactions during the year. January 15 Issued 15,000 shares of $1 par common stock for $70,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,200 shares of $1 par common stock into treasury for $35,200 cash. March 15 Reissued 2,200 shares of treasury stock for $26,200 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,110 bonds, at a quoted bond price of 101. October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $250,000 of service revenue, all of which was collected in cash. December 30 Paid $220,000 cash for this year's wages through December 31. (Ignore payroll taxes and payroll. deductions.) December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)
Transcribed Image Text:Phantom Incorporated, reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Debit $5,000 267,000 15,000 Credit $ 30,000 110,000 2,000 0 10,000 15,000 120,000 $ 287,000 $ 287,000 The company entered into the following transactions during the year. January 15 Issued 15,000 shares of $1 par common stock for $70,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,200 shares of $1 par common stock into treasury for $35,200 cash. March 15 Reissued 2,200 shares of treasury stock for $26,200 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,110 bonds, at a quoted bond price of 101. October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $250,000 of service revenue, all of which was collected in cash. December 30 Paid $220,000 cash for this year's wages through December 31. (Ignore payroll taxes and payroll. deductions.) December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)
Requirement General Journal General Ledger Trial Balance Balance Sheet Debt to Assets Ratio Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio. (Round your answer to 2 decimal places.) Calculate the debt-to-assets ratio at December 31. Debt to Assets Ratio % Does the company rely more (or less) on debt financing at the end of the year than at the beginning of the year? OMore Less
Transcribed Image Text:Requirement General Journal General Ledger Trial Balance Balance Sheet Debt to Assets Ratio Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio. (Round your answer to 2 decimal places.) Calculate the debt-to-assets ratio at December 31. Debt to Assets Ratio % Does the company rely more (or less) on debt financing at the end of the year than at the beginning of the year? OMore Less
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