The accounting records of Router Wireless include the following as of December 3
ID: 2342944 • Letter: T
Question
The accounting records of Router Wireless include the following as of December 31, 2018:
Requirements
1.) Report these liabilities on the Router Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities.
2.) Compute Router Wireless's debt to equity ration at December 31, 2018
Accounts Payable Mortgages Payable (long-term) Interest Payable Bonds Payable (long-term) Total Stockholders' Equity 76,000 Salaries Payable 72,000 Bonds Payable (current portion) 17,000 Premium on Bonds Payable 56,000 Unearned Revenue (short-term) 155,000 $ 10,000 25,000 12,000 2,400Explanation / Answer
1) PARTIAL BALANCE SHEET
Note : - stakeholder's equity is not a part of liability . it is shown separately.
2) Debt to equity ratio = Total debt / equity
= 268000/ 155000 = 1.729
Particulars Amount Amount Current Liab Accounts payable 76000 Interest payable 17000 Salaries payable 10000 Bond payable ( current portion) 25000 Premium on bond payable 12000 140000 Unearned revenue 2400 Long term liab Mortgage payable 72000 Bond payable 56000 128000 TOTAL LIAB 268000