Question Details

Stover Corporation reports the following amounts 


Ex. 1
The adjusted trial balance for Payne Corporation at the end of the current year contained the following accounts:
	Bonds payable, 10%		$560,000
	Bond interest payable		20,000
	Lease liability		60,000
	Mortgage notes payable, 9%, due 2013		80,000
	Accounts payable		120,000
Instructions
(a)	Prepare the non-current liabilities section of the statement of financial position.
(b)	Indicate the proper statement of financial position classification for the accounts listed above that do not belong in the non-current liabilities section.

Ex. 2
Stover Corporation reports the following amounts in their 2011 financial statements:

		At December 31, 2011	For the Year 2011

	Total assets	$2,000,000
	Total liabilities	  1,140,000
	Total equity	           ?
	Interest expense	$10,000
	Income tax expense	100,000
	Net income	150,000


Instructions
(a)	Compute the December 31, 2011, amount of equity.
(b)	Compute the debt to total assets ratio at December 31, 2011.
(c)	Compute times interest earned for 2011.




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