Question
Thrillville has $40.5 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed
Thrillville has $40.5 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed 2.0. Thrillville's total assets are $80.5 million, and its liabilities other than the bonds payable are $10.5 million. The company is considering some additional financing through leasing. 3. The company enters a lease agreement requiring lease payments with a present value of $15.5 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in millions (ie., $5,500,000 should be entered as 5.5) rounded to 1 decimal place.) View transaction sist Journal entry worksheet < The company enters a lease agreement requiring lease payments with a present value of $15.5 million. Record the lease. Note: Enter debits before credit Transaction General Journal Debit Credit
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