On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occurred: January 1 Borrowed $111,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,145.94 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $111,000. The 7% bonds pay interest semiannually each June 30 and December 31 . January 4 Received $32,100 from customers on accounts receivable. January 10 Paid cash on accounts payable, $22,000. January 15 Paid cash for salaries, $30,000. January 30 Firework sales for the month totalled $200,800. Sales included $66,100 for cash and $134,700 on account. The cost of the units sold was $118,000. January 31 Paid the first monthly installment of $2,146 related to the $111,000 borrowed on January 1 . The following information is available on January 31, 2024. 1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,600. 2. At the end of January, $4,100 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts wer written off as uncollectible in January. 3. Unpaid salaries at the end of January are $27,200. 4. Accrued income taxes at the end of January are $6,100. Prepare the journal entries for transactions. Note: If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. Round your interest calculation to the nearest dollar. Analyze the following for Freedom Fireworks: (a) Calculate the debt to equity ratio. If the average debt to equity ratio for the industry is 1.0 , is Freedom Fireworks more or less leveraged than other companies in the same industry? The debt to equity ratio is: Is the company more or less leveraged than other companies? (b) Calculate the times interest earned ratio. If the average times interest earned ratio for the industry is 20 times, is the company more or less able to meet interest payments than other companies in the same industry? The times interest earned ratio is: Is the company more or less able to meet interest payments than other companies? Based on the debt to equity ratio and the times interest earned ratio, ratio, Freedom Fireworks would more likely receive a higher or lower interest rate than the average borrowing rate in the industry? On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occurred: January 1 Borrowed $111,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,145.94 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $111,000. The 7% bonds pay interest semiannually each June 30 and December 31 . January 4 Received $32,100 from customers on accounts receivable. January 10 Paid cash on accounts payable, $22,000. January 15 Paid cash for salaries, $30,000. January 30 Firework sales for the month totalled $200,800. Sales included $66,100 for cash and $134,700 on account. The cost of the units sold was $118,000. January 31 Paid the first monthly installment of $2,146 related to the $111,000 borrowed on January 1 . The following information is available on January 31, 2024. 1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,600. 2. At the end of January, $4,100 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts wer written off as uncollectible in January. 3. Unpaid salaries at the end of January are $27,200. 4. Accrued income taxes at the end of January are $6,100. Prepare the journal entries for transactions. Note: If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. Round your interest calculation to the nearest dollar. Analyze the following for Freedom Fireworks: (a) Calculate the debt to equity ratio. If the average debt to equity ratio for the industry is 1.0 , is Freedom Fireworks more or less leveraged than other companies in the same industry? The debt to equity ratio is: Is the company more or less leveraged than other companies? (b) Calculate the times interest earned ratio. If the average times interest earned ratio for the industry is 20 times, is the company more or less able to meet interest payments than other companies in the same industry? The times interest earned ratio is: Is the company more or less able to meet interest payments than other companies? Based on the debt to equity ratio and the times interest earned ratio, ratio, Freedom Fireworks would more likely receive a higher or lower interest rate than the average borrowing rate in the industry