1. Determine the financial statement effects of Accounts Payable Transactions, when Hobson Company has the following items: b. C. d. e. Purchases $1,250 of inventory on credit. Sells inventory for $1,650 on credit. Records $1,260 cost of sales for transaction b. Receives $1,650 cash towards accounts receivable. Pays $1,260 cash to settle accounts payable. What is the ending balance of Accounts Payable after the above transactions? 2. (E7-39) Bonds Payable: On January 1, 20X7 - Arbor Corporation issued $800,000.00 of 20-year, 11% bonds for $739,814.81 yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30th and December 31. b. Confirm the bond issue price. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payable and discount amortization on June 30, 20X7, and (3) semiannual interest payment and discount amortization on December 31, 20X7. 3. Explain why credit ratings are important to the users of financial statements, specifically credit underwriters and how these impact ability to obtain debt upon request.

1. Determine the financial statement effects of Accounts Payable Transactions, when Hobson Company has the following items: a. Purchases $1,250 of inventory on credit. b. Sells inventory for $1,650 on credit. c. Records $1,260 cost of sales for transaction b. d. Recelves $1,650 cash towards accounts recelvable. e. Pays $1,260 cash to settle accounts payable. What is the ending balance of Accounts Payable after the above transactions? 2. KE7 -39) Bonds Payable: On January 1, 20x7 - Arbor Corporation issued $800,000.00 of 20 -year, 11% bonds for $739,814.81 velding a market (yield) rate of 12% interest is payable semiannually on June 30 and December 31. a. Confirm the bond issue price. b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payable and discount amortization on June 30,207, and (3) semiannual interest payment and discount amortization on December 31, 207. 3. Explain why credit ratings are important to the users of financial statements, specifically credit underwriters and how these impact ability to obtain debt upon request