Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $600,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note June 6 Purchased merchandise on account at a cost of $75,000 (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase Aug. 31 Signed a contract to provide security services to a small apartment complex and collected six months' fees in advance, amounting to $24,000 (Use an account called Deferred Revenue.) Dec. 31 Determined salary and wages of $40,000 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 services Required: 1. Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Received $600,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note. Note: Enter debits before credits. Date Apr 30 General Journal Debit Credit Record entry Clear entry View general journal

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Chapter12: Current Liabilities
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Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.
Apr. 30 Received $600,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note
June 6 Purchased merchandise on account at a cost of $75,000 (Assume a perpetual inventory system.)
July 15 Paid for the June 6 purchase
Aug. 31 Signed a contract to provide security services to a small apartment complex and collected six months' fees in advance,
amounting to $24,000 (Use an account called Deferred Revenue.)
Dec. 31 Determined salary and wages of $40,000 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 services
Required:
1. Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
3 4
Received $600,000 from Commerce Bank after signing a twelve-month, 6
percent, promissory note.
Note: Enter debits before credits.
Date
Apr 30
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
Transcribed Image Text:Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $600,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note June 6 Purchased merchandise on account at a cost of $75,000 (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase Aug. 31 Signed a contract to provide security services to a small apartment complex and collected six months' fees in advance, amounting to $24,000 (Use an account called Deferred Revenue.) Dec. 31 Determined salary and wages of $40,000 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 services Required: 1. Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Received $600,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note. Note: Enter debits before credits. Date Apr 30 General Journal Debit Credit Record entry Clear entry View general journal
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