• 1

  Record the issuance of 520 bonds at face value of $1,000 each for $506,090.

• 2

  Record the interest payment on December 31, 2018.

• 3

  Record the interest payment on December 31, 2019.

• 4

  Record the interest and face value payment on December 31, 2020.

• 5

  Record the retirement of the bonds at a quoted price of 98, assuming the bonds are retired on January 1, 2020.

General journal entry options:

• No Journal Entry Required
• Accounts Payable
• Accounts Receivable
• Accumulated Amortization
• Accumulated DepreciationBuildings
• Accumulated DepreciationEquipment
• Accumulated DepreciationVehicles
• Accumulated Other Comprehensive Income
• Additional Paid-In Capital, Common Stock
• Additional Paid-In Capital, Preferred Stock
• Additional Paid-In Capital, Treasury Stock
• Advertising Expense
• Allowance for Doubtful Accounts
• Amortization Expense
• Bad Debt Expense
• Bonds Payable
• Buildings
• Cash
• Cash Equivalents
• Cash Overage
• Cash Shortage
• Charitable Contributions Payable
• Common Stock
• Copyrights
• Cost of Goods Sold
• Deferred Revenue
• Delivery Expense
• Depreciation Expense
• Discount on Bonds Payable
• Dividends
• Dividends Payable
• Donation Revenue
• Equipment
• FICA Payable
• Franchise Rights
• Gain on Bond Retirement
• Gain on Disposal of PPE
• Goodwill
• Impairment Loss
• Income Tax Expense
• Income Tax Payable
• Insurance Expense
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventories
• Inventory - Estimated Returns
• Land
• Legal Expense
• Licensing Rights
• Logo and Trademarks
• Loss on Bond Retirement
• Loss on Disposal of PPE
• Natural Resource Assets
• Notes Payable (long-term)
• Notes Payable (short-term)
• Notes Receivable (long-term)
• Notes Receivable (short-term)
• Office Expenses
• Other Current Assets
• Other Noncurrent Assets
• Other Noncurrent Liabilities
• Other Operating Expenses
• Other Revenue
• Patents
• Payroll Tax Expense
• Petty Cash
• Preferred Stock
• Premium on Bonds Payable
• Prepaid Advertising
• Prepaid Insurance
• Prepaid Rent
• Refund Liability
• Rent Expense
• Rent Revenue
• Repairs and Maintenance Expense
• Restricted Cash (long-term)
• Restricted Cash (short-term)
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Revenue
• Sales Tax Payable
• Service Revenue
• Short-term Investments
• Software
• Subscription Revenue
• Supplies
• Supplies Expense
• Travel Expense
• Treasury Stock
• Unemployment Tax Payable
• Utilities Expense
• Vehicles
• Withheld Income Taxes Payable

On January 1, 2018, Loop Raceway issued 520 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $506,090. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year Required: 1. Prepare a bond amortization schedule 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98 Complete this question by entering your answers in the tabs below. Req 2 to5 Req 1 Prepare a bond amortization schedule Changes During the Period Ending Bond Liability Balances Discount on Bonds Payable Period Ended Cash Paid Carrying Value Discount Amortized Expense Interest Bonds Payable 01/01/18 12/31/18 12/31/19 12/31/20 Req1 Req 2 to 5 > Req 1Req 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 4 Record the issuance of 520 bonds at face value of $1,000 each for $506,090 Note: Enter debits before credits. Debit Credit Date General Journal Jan 01, 2018 View general journal Record entry Clear entry Req 1 Req 2 to 5 BSO, Inc., has assets of $850,000 and liabilities of $637,500 resulting in a debt-to-assets ratio of O.75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same, and enter the value of the new debt-to-assets ratio. Each item is independent. (Round your answers to 2 decimal places.) Debt-to-Assets Ratio a. Purchased $70,000 of new inventory on credit b. Paid accounts payable in the amount of $125,000 c. Recorded accrued salaries in the amount of $225,000 C. d. Borrowed $375,000 from a local bank, to be repaid in 90 days The balance sheet for Shaver Corporation reported the following: cash, $9,500; short-term investments, $14,500; net accounts receivable, $44,000; inventories, $49,000; prepaids, $14,500; equipment, $109,000; current liabilities, $49,000; notes payable (long term), $79,000; total stockholders' equity, $112,500; net income, $4,220; interest expense, $6,200; income before income taxes, 7,980 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Ratio Debt-to-Assets Times Interest Earned