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The balance sheet for Shaver Corporation reported the following: cash, $5,000; short-term investments, $10,000; net accounts receivable, $35,000; inventory. $40,000; prepaids, $10,000; equipment, $100,000; current liabilities, $40,000; notes payable (long-term). $70.000; total stockholders' equity. $00,000; net income, $3,320; interest expense, $4,400; income before income taxes, $5,280. 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Debt-to-Assets terest Earned Ratio Times 2-a. Based on these ratios, does it appear Shaver relies mainiy on debt or equity to finance its assets? O Debt O Equity is it probable that Shaver will be able to meet its future interest obligations? 2-b. O Yes G No Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($104,000), payroll deductions for income tax ($10.400), payroll deductions for FICA ($7,800), payroll deductions for American Cancer Society ($3,900), employer contributions for FICA (matching), and state and federal unemployment taxes ($780). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxes have not yet been recorded b. Collected rent revenue of $6,450 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 12 to January 10 and was credited in full to Uneaned Rent Revenue. Required: 1& 2.Complete the required journal entries for the above transactions as shown below (i) Prepare the entries required on December 31 to record payroll. (i) Prepare the jounal entry for the collection of rent on December 10. () Prepare the adjusting journal entry on December 31. (Do not round intermediate calculations. If no entry is required for a transaction/levent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > Record the wages expense, including pay roll deductions. Note: Enter debits before credits. Date General Journal Debit Credit December 31 3 2 Record the payroll tax expense. Note: Enter debits before credits. Debit Credit General Journal Date December 31 Record entry Clear entry View general journal 3 Show how any lisbilities related to these items should be reported on the company's balance sheet at December 31 LAKEVIEW COMPANY Balance Sheet (partial) Tyne h

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