Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $672,000 from Commerce Bank after signing a 12-month, 9.00 percent, promissory note.June 6 Purchased merchandise on account at a cost of $81,000. (Assume a perpetual inventory system.)July 15 Paid for the June 6 purchase.Aug. 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $27,000.Dec. 31 Determined salary and wages of $46,000 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:For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer's debt-to-assets ratio is less than 1.0.)QUESTION INFORMATION IN IMAGES Complete this question by entering your answers in the tabs below.Required 1Required 2For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Round your answers todollar. Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in transaction order provided in the problem statement.)DateAssetsLiabilitiesStockholders' EquityApr. 30June 6July 15Aug. 31Dec. 31Dec. 31Dec. 31< Required 1Required 2 > Complete this question by entering your answers in the tabs below.Required 1Required 2For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume JackHammer's debt-to-assets ratio is less than 1.0.) (Enter your answers in transaction order provided in the problem statement.):DateEffect on RatioNumeratorDenominatorApr. 30June 6July 15Aug. 31Dec. 31Dec. 31Dec. 31< Required 1Required 2 >

Accounting Equation: It is also known as a basic accounting equation. It provides the foundation for…

Answered: Jack Hammer Company completed the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.

Apr. 30 Received $672,000 from Commerce Bank after signing a 12-month, 9.00 percent, promissory note.

June 6 Purchased merchandise on account at a cost of $81,000. (Assume a perpetual inventory system.)

July 15 Paid for the June 6 purchase.

Aug. 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $27,000.

Dec. 31 Determined salary and wages of $46,000 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:

For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.
For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer's debt-to-assets ratio is less than 1.0.)

QUESTION INFORMATION IN IMAGES

Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Round your answers to
dollar. Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in transaction order provided in the problem statement.)
Date
Assets
Liabilities
Stockholders' Equity
Apr. 30
June 6
July 15
Aug. 31
Dec. 31
Dec. 31
Dec. 31
< Required 1
Required 2 >

Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack
Hammer's debt-to-assets ratio is less than 1.0.) (Enter your answers in transaction order provided in the problem statement.):
Date
Effect on Ratio
Numerator
Denominator
Apr. 30
June 6
July 15
Aug. 31
Dec. 31
Dec. 31
Dec. 31
< Required 1
Required 2 >

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