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1. SALE OF BONDS at Discount a)WHAT IS THE PRICE OF A 833k Bond , 5 years @7% Interest, MKT rate 11%, interest paid yearly; Journalize the sale on 1-1-2015. What is Bond selling at “99, 98, 97, for instance?" PRESENT VALUE OF $1 FOR FIVE YEARS at 11% .59345 Present value of annuity for five years at 11% 3.6959 b) Journalize the payment of interest expense for the first three years;12-31-2015, 12-31-2016, and 12-31-2017, amortizing the premium/discount using the straight-line rate of interest. c) Journalize the payment of interest expense for the first three years;12-31- 2015, 12-31-2016, and 12-31-2017, amortizing the premium/discount using the effective rate of interest. d) ON 1-1-2018, the Bond was converted to 10k common stock shares at $16/share market value. The par value of the stock is $10/share. Journalize this transaction using the results of amortization in "b)".
2.
Transic Corporation has the following financial data for 2016 and 2017.
| 2017 | 2016 | |
| ASSETS | ||
| Current Assets: | ||
| Cash | $ 48,000 | $ 14,000 |
| Marketable Securities | 9,000 | 13,000 |
| Accounts Receivable | 35,000 | 24,000 |
| Other Current Assets | 15,000 | 18,000 |
| Total Current Assets | 107,000 | 69,000 |
| Fixed Assets (net) | 140,000 | 130,000 |
| Total Assets | $247,000 | $199,000 |
| LIABILITIES | ||
| Current Liabilities | $ 72,000 | $ 52,000 |
| Long-term Liabilities | 50,000 | 37,000 |
| Total Liabilities | $122,000 | $ 89,000 |
| Total Stockholders' Equity | $125,000 | $110,000 |
| Total Liabilities And Stockholders' Equity | $247,000 | $199,000 |
What is Transic's current ratio for 2017?
a.1.49
b.2.14
c.0.88
d.0.21
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