Apr. 30 Received $495,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note. June Purchased merchandise on account at a cost of $68,000. (Assume a perpetual inventory 6 system.) July 15 Paid for the June 6 purchase. Aug. Signed a contract to provide security service to a small apartment complex and collected six months' fees in advance amounting to $19,800. (Use an account called Unearned Revenue.) 31 Dec. 31 Determined salary and wages of $33,000 were earned but not yet paid as of December 31 (ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to security service. Required: 182. Complete the required journal entries for each of the above transactions. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.)
Apr. 30 Received $495,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note. June Purchased merchandise on account at a cost of $68,000. (Assume a perpetual inventory 6 system.) July 15 Paid for the June 6 purchase. Aug. Signed a contract to provide security service to a small apartment complex and collected six months' fees in advance amounting to $19,800. (Use an account called Unearned Revenue.) 31 Dec. 31 Determined salary and wages of $33,000 were earned but not yet paid as of December 31 (ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to security service. Required: 182. Complete the required journal entries for each of the above transactions. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Apr. 30 Received $495,000 from Commerce Bank after signing a 12-month, 5 percent, promissory
note.
June Purchased merchandise on account at a cost of $68,000. (Assume a perpetual inventory
6
system.)
July 15
Paid for the June 6 purchase.
Aug.
Signed a contract to provide security service to a small apartment complex and collected six
months' fees in advance amounting to $19,800. (Use an account called Unearned Revenue.)
31
Dec. 31
Determined salary and wages of $33,000 were earned but not yet paid as of December 31
(ignore payroll taxes).
Dec. 31
Adjusted the accounts at year-end, relating to interest.
Dec. 31
Adjusted the accounts at year-end, relating to security service.
Required:
182.
Complete the required journal entries for each of the above transactions. (Do not round
Intermediate calculations. If no entry is required for a transaction/event, select "No Journal
Entry Required" In the first account fleld.)
1. Record the borrowing of $495,000.
2. Record the purchase of inventory worth $68,000 on account.
3. Record the payment for inventory in full.
4. Record the collection of six month's security service fees in advance amounting to $19,800.
5. Record the wages earned, but not yet paid as of December 31.
6. Record the adjusting entry relating to interest.
7. Record the adjusting entry relating to security service fees.
Show how all of the liabilities arising from these items are reported on the
balance sheet at December 31. (Do not round Intermediate calculations.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf8910e3-f3f3-465b-ab97-a508fcbc7710%2Fa75c31c7-f862-4bc7-97d1-9b05d77c9839%2Fm5qzvko_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Apr. 30 Received $495,000 from Commerce Bank after signing a 12-month, 5 percent, promissory
note.
June Purchased merchandise on account at a cost of $68,000. (Assume a perpetual inventory
6
system.)
July 15
Paid for the June 6 purchase.
Aug.
Signed a contract to provide security service to a small apartment complex and collected six
months' fees in advance amounting to $19,800. (Use an account called Unearned Revenue.)
31
Dec. 31
Determined salary and wages of $33,000 were earned but not yet paid as of December 31
(ignore payroll taxes).
Dec. 31
Adjusted the accounts at year-end, relating to interest.
Dec. 31
Adjusted the accounts at year-end, relating to security service.
Required:
182.
Complete the required journal entries for each of the above transactions. (Do not round
Intermediate calculations. If no entry is required for a transaction/event, select "No Journal
Entry Required" In the first account fleld.)
1. Record the borrowing of $495,000.
2. Record the purchase of inventory worth $68,000 on account.
3. Record the payment for inventory in full.
4. Record the collection of six month's security service fees in advance amounting to $19,800.
5. Record the wages earned, but not yet paid as of December 31.
6. Record the adjusting entry relating to interest.
7. Record the adjusting entry relating to security service fees.
Show how all of the liabilities arising from these items are reported on the
balance sheet at December 31. (Do not round Intermediate calculations.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education