On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that have annual payments of $8,658. The first note payment consists of $3,520 of interest and $5,138 of principal repayment.Question Content Areaa. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank.blank - Select -- Select - - Select -- Select - Question Content Areab. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.blank - Select -- Select - - Select -- Select - - Select -- Select - Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4Dec. 31, 20Y3Cash$1,020 $960 Temporary investments1,200 1,400 Accounts receivable820 940 Inventory2,200 2,600 Accounts payable1,900 2,200 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y420Y3Quick Ratiofill in the blank 1 fill in the blank 2 b. Is the quick ratio improving or declining?

Journal Entry :— It is an act of recording transaction in books of account when transaction occurred. General Rule :— Debit the receiver, credit the giver. Debit what comes in, credit what goes out. Debit all expenses & losses, credit all income & gains. Quick Ratio :— It is calculated by dividing quick assets by current liabilities. Working Note #1:— Dec.31, 20Y4 Dec.31, 20Y3 Cash (A) $1,020 $960 Temporary investments (B) 1,200 1,400 Accounts receivable (C) 820 940 Quick Assets (D=A+B+C) $3,040 $3,300 Accounts payable (E) $1,900 $2,200 Quick Ratio (D/E) 1.6 1.5 Question #1:— Requirement #a:— Debit Credit Cash $32,000 Notes Payable $32,000 Requirement #b:— Debit Credit Interest Expense $3,520 Notes Payable $5,138 Cash $8,658Question #2:— Requirement #1:—(See Working Note #1) 20Y4 20Y3 Quick Ratio 1.6 1.5 Requirement #2:— Quick Ratio is improving from Year 20Y3 to 20Y4 because it is increasing.

Answered: On the first day of the fiscal year, a…

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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a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank.

blank		- Select -	- Select -
		- Select -	- Select -

Question Content Area

b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.

blank	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -

Adieu Company reported the following current assets and current liabilities for two recent years:

	Dec. 31, 20Y4	Dec. 31, 20Y3
Cash	$1,020		$960
Temporary investments	1,200		1,400
Accounts receivable	820		940
Inventory	2,200		2,600
Accounts payable	1,900		2,200

a. Compute the quick ratio on December 31 for each year. Round to one decimal place.

	20Y4	20Y3
Quick Ratio	fill in the blank 1		fill in the blank 2

b. Is the quick ratio improving or declining?

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