Could someone look over my work and provide feedback if I am doing this correctly or what I have done incorrectly. There are 5 tabs/assignments which I have completed (E7-17, E7-21A, E7-21 B & C, P7-34, and ratio analysis.)

Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. A. Pear, Inc. issued $400,000 of a 10-year, 8 percent bonds at 103. The bonds were sold at a premium. $400,000*103=$412,000 B. Apple, Inc. issued $200,000 of five-year, 12 percent bonds at 97 1/2. The bonds were sold at a discount $200,000*97.5=$195,000 C. Cherry Co. issued $100,000 if five-year, 6 percent bonds at 102 1/4. The bonds were sold at a premium. $100,000*102.25=$102,250 D. Grape, Inc. issued $120,000 of four-year. 8 percent bonds at 96. The bonds were sold at a discount $120,000*96=$115,200 E7-21 Requirement a. Horizontal Model Accounting Equati Assets Event Total Cash Inv. 50,000 (380,000) 510,000 (330,000) 1 2 3a 3b 4 5 (32,000) 6 50,000 7 8 9 (250,000) 10 4 months (382,000) Balance Sheet Liabilities = A. Pay S.T. Pay. Warr. Pay. Int. Pay. ### 380,000 Note. Pay. - ### ### - = 130,000 - - - 50,000 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account 3. Sold equipment for $510,000 cash (not including sales tax) Sales tax of 8 percent is collected when the merchandise is so 4. Provided a six month warranty on the equipment sold. Based on iundustry estimates, the warranty claims would amount 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On Sept. 1, 2018 borrowed $50,000 from the local bank. The note had 4 percent interst rate ad matured on March 1, 201 7. Paid $6,200 for warranty repairs during the year. 8. Paid operating expenses of $78,000 for the year 9. Paid $250,000 of accounts payable 10. Recorded accrued interest on the note issued in transaction 6. Round to the nearest whole dollar. Required A. Record the given transactions in a horizontal statements model B. Prepare the income statement, balance sheet, and statement of cash flows for 2018 C. What is the total amount of current liabilities at Dececmber 31, 2018? zontal Model Accounting Equation Income Statement + CS 50000 + 50,000 RE Rev. - - - Exp. = - - 510,000 (370,800) (10,200) ### 510,000 Amt 50,000 ### (32,000) ### 78,000 (667) (497,867) ### 28,933 cted when the merchandise is sold. The merchandise had a cost of $330,000. e warranty claims would amount to 2 percent of sales rate ad matured on March 1, 2019. Net Income ### (6,200) (78,000) n stock hole dollar. Cash Flows Stockholder's Equity Section FA OA OA OA OA FA OA OA OA 50,000 Requirement b. There are some blanks started for you; you will need to be sure to add all accounts. 0 Income Statement For the Year ended 12/31/ Sales Revenue Cost of Goods Sold Gross Margin Operating Expenses $ $ 78,000 10,200 $ $ 50,000 91,133 $ 510,000 Total Operating Expenses Operating Income Net Income 0 Balance Sheet As of 12/31/ Assets Total Assets Liabilities Sales Tax Payable Total Liabilities Stockholder's Equity Common Stock Total Stockholder's Equity 0 Statement of Cash Flows For the Year ended 12/31/2012 Cash Flows from Operating Activities Inflow from Sales Tax $ $ $ $ 40,800 (250,000) (84,200) (32,000) $ $ 50,000 50,000 Net Cash Flow from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Net Cash Flow from Financing Activities Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance c. Accounts Payable Sales Tax Payable Warranty Payable Interest Payable Notes Payable Total Current Liabilities Current Liabilities: $130,000.00 $8,800.00 $4,000.00 $667.00 $50,000.00 $193,467.00 $ 510,000 $ 330,000 $ 180,000 $ 88,200 $ $ 91,800 667 $ 91,133 $ $ $ 284,600 50,000 334,600 $ $ $ $ $ $ 130,000 8,800 4,000 667 50,000 193,467 $ 141,133 $ 334,600 $ $ 184,600 - $ 100,000 $ $ $ 284,600 284,600 P7-34 Effect of Transactions on Financial Statements Rev./ No. a b c d e Assets + + - = Liab. + + NA NA + Equity NA NA - Gain NA NA NA NA NA Required A. Issued a bond at face value. B. Borrowed funds using a line of credit. C. Made an interest payment for funds that had been borrowed against a line of credit. D. Made a cash payment on a note payable for both interest and principal. E. Made an interest payment on a bond that had been issued at face value. - atements dit. Exp./ Loss NA NA + + + = Net Inc. NA NA - Cash Flows +FA +FA -OA -FA / -OA -OA Use the following data, complete the ratio analysis below Company A Current Assets $6,053 Current Liabilities $4,446 Total Assets $13,659 Total Liabilities $10,630 Company B Current Assets Current Liabilities Total Assets Total Liabilities $6,918 $2,025 $12,667 $2,692 A. Compute the current ratio for each company Company A 6053/4446 $1.36 Company B 6918/2025 $3.42 B. Compute the debt to assets ratio for each company Company A 10630/13659 77.82% Company B 2692/12667 21.25% C. Based on the ratios computed in a and b which company had better liquidity? Company B has the better liquidity D. Based on the ratios computed in a and b which company had better solvency? Company B has the better solvency