The accounting records of Compass Point Wireless include the following as of December 31, 2016: Accounts Payable 71,000 Salaries Payable 10,500
Mortgages Payable (long term) 80,000 Bonds Payable(current portion) 24,000
Interest Payable 17,000 Premium on Bonds Payable 10,000
Bonds Payable (long term) 64,000 Unearned Revenue (short-term) 2,400
Total Stockholders Equity 160,000
Requirements
1. Report these liabilities on the Compass Point Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities.
2. Compute Compass Point Wireless's debt to equity ratio at December 31, 2016.

1,               Compass Point Wireless

                  Balance sheet (partial)

Current Liabilities:                                $

Accounts Payable                            71,000

Interest Payable                               17,000

Salaries Payable                               10,500

Unearned Revenue                          2,400

Current Portion of Bonds payable  24,000

Total current Liabilities                 $ 124,900

Long term Liabilities                               $

Mortgage Payable                              80,000

Bonds Payable                                    64,000

Premium on Bonds Payable               10,000

Total long term liabilities                 $154,000

Total liabilities = Total current Liabilities + Total long term liabilities

=  $ 124,900 + $154,000

= 278900

2. Debt        Stockholders' equity           Debt to equity ratio

 278,900             160,000                             1.74

Note: Debt to equity ratio = Debt / Stockholders' equity

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