Katy Williams is the manager of Blue Light Arcade. The company provides entertainment for parties and special events.

a. Blue Light Arcade received $58 cash on account for a birthday party held two months ago.
b. Agreed to hire a new employee at a monthly salary of $3,250. The employee starts work next month.
c. Paid $2,250 for a table top hockey game purchased last month on account.
d. Repaid a $5,250 bank loan that had been outstanding for six months. (Ignore interest.)
e. The company purchased an air hockey table for $3,200, paying $1,500 cash and signing a short-term note for $1,700.

Prepare journal entries for the above transactions relating to the year ended December 31.

4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $208,000. what would the new 39 percent bubble rate have to be? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)