Question

Pizza Pier retires its 8% bonds for $70,300 before their scheduled maturity. At the time, the bonds have a face value of $72,300 carrying value of $74,950.

Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

• Record the early retirement of the bonds.

2,

Stealth Fitness Center issues 5%, 6-year bonds with a face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually.

At what price will the bonds be issued? Use Table 2 and Table 4. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount.)

Whats the ISSUE price?

3.

Selected financlal data for these two close competitors In the home building Industry are provided below Company A $40,948 21,480 19,460 Company B $33,e20 13,980 19,048 (S in millions) Total assets Total liabilities Total stockholders' equity Sales $66,172 71e 1,458 2,690 $47,260 36e 1,01e 1,718 Interest expense Тах еxpense Net income 1-a. Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.) Debt to Equity Ratio Company A Company B 1-b. Which company has the higher ratio? о Company B Company A 2-a. Calculate the times interest earned ratio for Company A and Company B. (Round your answers to 1 decimal place.) Time Interest Earned Ratio Company A. Company B times times 2-b. Which company Is better able to meet Interest payments as they become due? О Company B O Company A