2 2.22 points Return to question E10-5 (Algo) Determining the Impact of Current Liability Transactions, Including Analysis of the Debt-to-Assets Ratio [LO 10-2, LO 10-5] Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, short-term notes payable are used to obtain cash for current use. The following transactions were selected from those occurring during the year: Mc Graw Hill a. On January 10, purchased merchandise on credit for $23,500. The company uses a perpetual inventory system. b. On March 1, borrowed $51,000 cash from City Bank and signed a promissory note with a face amount of $51,000, due at the end of six months, accruing interest at an annual rate of 9.00 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. 2. What amount of cash is paid on the maturity date of the note? 3. Indicate the impact of each transaction (increase, decrease, and no effect) on the debt-to-assets ratio. Assume Bryant Company had $410,000 in total liabilities and $610,000 in total assets, yielding a debt-to-assets ratio of 0.67, prior to each transaction. Answer is not complete. Complete this question by entering your answers in the tabs below. < Prev 2 of 9 Next >