LO2. What are bonds a) In your own words, what is a bonds payable? are unsecured bonds backed only by the credit worthiness of the bond issuer. are bonds that give bondholders the right to take specified assets of the issuer if the issuer fails to pay principal or interest. are bonds that mature in installments at regular intervals. are bonds that mature all at the same time. LO3. How are bonds payable accounted for using the straight-line amortization method 1) A bond that has a face value of $100,000 but is issued for $95.000. 2) A bond that has a face value of $100,000 but is issued for $106,000. Date Accounts and Explanation Debit Credit Los How are liabilities reported on the balance sheet a) Identify if the liability would be classified as a current liability (CL) or a long-term liability (LTL) on the balance sheet. i) Bonds Payable i) Accounts Payable in Mortgage Payable iv) Accounts Payable v) FICA taxes LO6. How do we use the debt to equity ratio to evaluate performance a) What is the formula for debt to equity ratio? $20,000, and total equity in the business is $40,000, what is the debt to equity ratio? L06. How do we use the debt to equity ratio to evaluate performance a) What is the formula for debt to equity ratio? b) If total current liabilities are $10,000, long-term liabilities are $20,000, and total equity in the business is $40,000, what is the debt to equity ratio? There are no questions from Objectives 12.7 or 1 12.8. You are required to **master these objectives on the Study Plan