1. Because interest rates have fallen, a company retires bonds which had been issued at their face value of $250,000. The company bought the bonds back at 95.75. The journal entry to record this retirement includes a debit of:

a) $239,375 to Bonds Payable, a debit to Gain on Bond Retirement of $10,625 and a credit of $250,000 to Cash.

b) $250,000 to Bonds Payable, a credit of $10,625 to Interest Expense, and a credit of $239,375 to Cash.

c) $239,375 to Bonds Payable and a credit of $239,375 to Cash.

d) $250,000 to Bonds Payable, a credit of $10,625 to Gain on Bond Retirement, and a credit of $239,375 to Cash.

2. On December 31, 2015, a company had assets of $29 billion and stockholders' equity of $22 billion. That same company had assets of $55 billion and stockholders' equity of $17 billion as of December 31, 2016. During 2016, the company reported total sales revenue of $22 billion and total expenses of $20 billion. What is the company's debt-to-assets ratio on December 31, 2016?

a) 0.69

b) 0.31

c) 0.036

d) 0.038

3. A company has current assets of $5.00 million and net income of $10.0 million. Current liabilities total $2.5 million, interest expense is $2.0 million, and income tax expense is $3.0 million. What is the times interest earned ratio for this company? (Round your final answer to 2 decimal places.)

a) 0.50.

b) 2.00.

c) 0.30.

d) 7.50.

4. A company issued 10-year, 7.50% bonds with a face value of $100,000. The company received $97,827 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first interest period is:

a) $2,173.00

b) $7,282.70

c) $7,717.30

d) $7,500.00