Do required 1 and 2 (SP 15)

Information, balance sheet of March 31, 2020 to answer question above

Fundamental Accounting Principles, 24e Exit Assignment x Concepts > JA 6 CAlexander Mage/Shutterstock SP 15 While reviewing the March 31, 2020, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2020, Business Solutions makes the following investments in trading securities. Apr. Apr. 16 Purchases Johnson & Johnson bonds for $10,000 30 Purchases Starbucks notes for $4.400. On June 30, 2020, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2020, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities. Ext Assignment X Concepts > WA A CAlexander Image/Shutterstock SP 14 Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets $120,268 Total liabilities $8% Total equity $119.993 Required 1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to-equity ratio not exceed 0.8. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? Check (1) $94,639 2. If Business Solutions borrows the maximum amount allowed from the bank, what percentage of assets would be financed (a) by debt and (b) by equity? 3. What are some factors Santana Rey should consider before borrowing the funds? To Questions Als Reserved