Question: what does net bonds on the balance sheet look like? About Information: On August 1, Terry issued a $210,000, semi-annual, 7 year, 5.5% bond. The

what does net bonds on the balance sheet look like? About

what does net bonds on the balance sheet look like?

About Information: On August 1, Terry issued a $210,000, semi-annual, 7 year, 5.5% bond. The market rate for similar bonds on that day was 6.0%. Terry uses the effective interest method to record the amortization or premiums and discounts. Terry's management has decided to report net bonds on the balance sheet, instead of reporting the bond and its premium or discount separately. No entries have yet been made for the bond. Terry's management would like to know the effect of the sale on the following ratios: Debt to Equity Ratio (Total Liabilities / Total Equity) Current Ratio ROA

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