1. Bonds On October 1, 2020, Proximo, Inc. issued $2,420,000 par value, 5%, 12-year bonds, with interest payable semiannually on January 1 and July 1. The bonds originally sell for $2,132,240, to yield 7%. The straight-line amortization method is used by Proximo to account for any bond discount or premium. a).Were these bonds issued at a discount or premium to par? If so, what is the amount? b).Prepare the journal entry required at bond issuance. c). Prepare the adjusting journal entry at December 31, 2020, the end of the fiscal year. d).Prepare the journal entry for the interest payment on January 1, 2021. e).Prepare the journal entry for the interest payment on July 1, 2021. Assume no entries have been made since the January 1 entry.

2. (use the picture below) Compute the Quick Ratio: (Use same formula as earlier discussed, ignore deferred income taxes in computations)

If industry average is 2.0, how is Fleetwood doing compared to the industry?

Recall that Current ratio is Current Assets Current Liabilities. Why do some people prefer the Quick ratio to the Current ratio?

Compute the Debt Ratio: Total liabilities Total Assets

Lets say that the industry average is 50%. Does that mean that Fleetwood has higher or lower leveragethan its competitors? Are higher or lower numbers better?

Compute the Debt-to-Equity Ratio: Total liabilities Total Stockholders Equity

If the industry average is 3.2, does that mean that Fleetwood has higher or lower leverage than its competitors? Are higher or lower numbers better?

This is the balance sheet of the Fleetwood Company as of 12/31/2018. 12/31/2018 Cash and Equivalents $103,522 Accounts Payable Marketable Securities 498,054 Wages Payable Receivables 42,655 Accrued Expenses Inventories 418,907 Deferred Revenue Deferred Income Taxes 28,922 Income Taxes Payable Other Current Assets 62.338 TOTAL CURRENT LIABILITIES TOTAL CURRENT ASSETS $1,154,398 TOTAL LONG-TERM LIABILITIES PP&E, net of Acc. Dep. 2,295,545 TOTAL SHAREHOLDERS' EQUITY Other Assets 42.311 TOTAL LIAB & SE TOTAL ASSETS $3.492.254 12/31/2018 $102,655 31,560 214,877 42,600 72.598 464,290 1,922,507 1,105,457 $3.492.254