Chamandy Corporation issued a $ 25,000,000, 7 percent note on July 1, 2015, at a market rate

Question:

Chamandy issued a $ 25,000,000, 7 percent note on July 1, 2015, at a market rate of 6 percent. The note was dated July 1, 2015, with interest to be paid each June 30. The note matures in 10 years. The company’s fiscal year ends on December 31.
Required:
1. How are the affected by the issuance of the note? Describe the impact on the debt- to- equity and the times interest earned ratios, if any.
2. How are the affected by the payment of interest on June 30, 2015? Describe the impact on the debt- to- equity and the times interest earned ratios, if any.
3. Show how the interest expense and the note payable should be reported on the December 31, 2015, annual Use the straight- line method to amortize any discount or premium. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...