On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%. The market interest rate is 5%. The issue price of the bond was $10,906. Your company used the effective-interest method of amortization. At the end of the first year, your company should: Multiple Choice debit Interest Expense for $700, debit Premium on Bonds Payable for $155.00, and credit Interest Payable for $545.00. debit interest Expense for $545.00, debit Premium on Bonds Payable for $155 00, and credit Cash for $700. debit interest Expense for $545.00 and credit Interest Payable for $545.00 debit interest Expense for $700. credit Premium on Bonds Payable for $155.00, and credit Interest Payable for $545 00 onsider the following information: $ 25,100 184,200 125,300 202,800 130,000 $667,400 Gil's Fish and Tackle, Inc. Balance Sheet At December 31, 2018 Assets Cash Accounts Receivable (less allowance) Inventories Property, plant and Equipment Long-term Investments Total Assets Liabilities Accounts Payable Current Portion of Long-Term Debt Long-Term Notes Payable Total Liabilities Stockholders' Equity Contributed capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 54,200 75,800 123,000 253,000 300,000 114,400 414,400 $667,400 $3,065,000 Gil's Fish and Tackle, Inc. Income Statement For the year ending December 31, 2018 Sales Revenue Operating Expenses Salaries and Wages Expense Operating and Admin. Expenses Depreciation Expense Operating Expenses Operating Income Other Expenses Interest Expense Income Before Income Tax Expense Income Tax Expense Net Income 1,940,500 316.709 368,480 2,625,600 439,400 18,450 420,950 155,752 265,198 $ Required: Calculate the debt-to-assets ratio and the times interest earned. (Round your answers to 2 37 911 Debt-to-Assets Ratio Times Interest Earned