Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $720,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note. June 6 Purchased merchandise on account at a cost of $83,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. August 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 $28,800. December 31 Determined salary and wages of $45,000 were earned but not yet paid as of December 31 (ignore payroll taxes). December 31 Adjusted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to security service. Required: 1. & 2. Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31 3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31
Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $720,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note. June 6 Purchased merchandise on account at a cost of $83,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. August 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 $28,800. December 31 Determined salary and wages of $45,000 were earned but not yet paid as of December 31 (ignore payroll taxes). December 31 Adjusted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to security service. Required: 1. & 2. Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31 3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DO NOT GIVE SOLUTION IN IMAGE FORMAT
Transcribed Image Text:Req 1 and 2
Reg 3
Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31. (Do not round
Intermediate calculations. 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
Date
April 30
3
Record the borrowing of $720,000.
hotel Enter debits before credits
Record entry
4
5
6
General Journal
Clear entry
7
and 7
Debit
Credit
View general journal
Rey >
Transcribed Image Text:Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.
April 30 Received $720,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note.
June 6 Purchased merchandise on account at a cost of $83,000. (Assume a perpetual inventory system.)
July 15 Paid for the June 6 purchase.
August 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 $28,800.
December 31 Determined salary and wages of $45,000 were earned but not yet paid as of December 31 (ignore payroll taxes).
December 31 Adjusted the accounts at year-end, relating to interest.
December 31 Adjusted the accounts at year-end, relating to security service.
Required:
1. & 2. Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31
3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31
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