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I. On January 1, 2010, Yeargan Company obtained an $88,000, seven year 5% installment note from Farmers Bank. The note requires annual payments of $15,208,

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I. On January 1, 2010, Yeargan Company obtained an $88,000, seven year 5% installment note from Farmers Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. Requirement (1) Journalize the following entries: a. Issued the installment notes for cash on January 1, 2010. b. Paid the first annual payment on the note. c. Paid the second annual payment on the note. 2. The following items are reported on a company's balance sheet: Cash Marketable securities Accounts receivable Inventory Accounts payable $400,000 50,000 150,000 200,000 250,000 Determine the (a) net working capital, (b) current ratio, and (c) quick ratio. Round your answer to one decimal place. On the first day of the current fiscal year, $1,500,000 of i0 year, 8% bonds, with interest payable annually, were sold for $1,225,000. 3 Present entries to record the following transactions for the current fiscal year: (a) (b) (c) Issuance of the bonds. First annual interest payment. Amortization of bond discount for the year, using the straight-line method of amortization. Present entries to record the following selected transactions of Masterson Co. (a) Purchased 600 shares of the 100,000 shares outstanding common shares of Dankin (b) Purchased 3,500 shares of the 10,000 shares no par common shares of Ramon Co. for Corporation as an Available-for-Salesecurity for $5,100. $45,700. The investment was accounted for by the equity method. (c) Received a cash dividend of $1 per share on the Dankin Corporation stock acquired in (a). (d) Received a cash dividend of $2 per share on the Ramon Co. stock acquired in b) (e) Sold 100 shares of the Dankin Corporation shares acquired in (a) for $2,100. (0) Recorded the appropriate share of Ramon Company's net income of $50,000. The stock was acquired in (b). Dankin is an Available-for-Sale Security.and is adjusted to a Fair Value of $10/ share (8)

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