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Skysong, Inc. issued $373,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $345,025, the company redeemed
Skysong, Inc. issued $373,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $345,025, the company redeemed the bonds at 94. Prepare the entry to record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Whispering Winds Company provides you with the following balance sheet information as of December 31, 2019. Current assets Long-term assets $10,800 25,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $12,950 9,900 12,950 Total assets $35,800 $35,800 In addition, Whispering Winds reported net income for 2019 of $15,650, income tax expense of $3,200, and interest expense of $1,500. (Round ratios to 2 decimal places, using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (a) Compute the current ratio and working capital for Whispering Winds for 2019. Current ratio Working capital (b) Assume that at the end of 2019, Whispering Winds used $3,200 cash to pay off $3,200 of accounts payable. How would the current ratio and working capital have changed? Current ratio Working capital (c)
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