1. On January 1, Innovative Solutions, Inc. issued $150,000 in bonds at face value. The bonds have a stated interest rate of 6 percent. The bonds mature in 10 years and pay interest once per year on December 31.

Required:

1, 2 & 3.

Complete the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 101. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

2. At April 30, 2013, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements:

	2013				2012
Total Assets		$	13,300			$	11,100
Total Liabilities			8,512				6,882
Interest Expense			310				310
Income Tax Expense			460				385
Net Income			1,090				1,010

Required:
1.	Compute the debt-to-assets ratio and times interest earned ratio for 2013 and 2012. (Round your answers to 2 decimal places.) Debt-To-Assets 2013? 2012? Times Interest Earned Ratio 2013? 2012?