Tiger Company completed the following transactions. The annual accounting period ends December 31. January 3 Purchased merchandise on account at a cost of $33,000. (Assume a perpetual inventory system.) January 27 Paid for the January 3 purchase. April 1 Received $89,000 from Atlantic Bank after signing a 12-month, 6.0 percent promissory note. June 13 Purchased merchandise on account at a cost of $9,800. July 25 Paid for the June 13 purchase. July 31 Rented out a small office in a building owned by Tiger Company and collected eight months' rent in advance amounting to $9,800. December 31 Determined wages of $21,000 were earned but not yet paid on 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 rent. Required: 1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. 2. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Tiger Company's debt-to-assets ratio is less than 1.0.)
Tiger Company completed the following transactions. The annual accounting period ends December 31. January 3 Purchased merchandise on account at a cost of $33,000. (Assume a perpetual inventory system.) January 27 Paid for the January 3 purchase. April 1 Received $89,000 from Atlantic Bank after signing a 12-month, 6.0 percent promissory note. June 13 Purchased merchandise on account at a cost of $9,800. July 25 Paid for the June 13 purchase. July 31 Rented out a small office in a building owned by Tiger Company and collected eight months' rent in advance amounting to $9,800. December 31 Determined wages of $21,000 were earned but not yet paid on 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 rent. Required: 1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. 2. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Tiger Company's debt-to-assets ratio is less than 1.0.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Tiger Company completed the following transactions. The annual accounting period ends December 31.
January 3 Purchased merchandise on account at a cost of $33,000. (Assume a perpetual inventory system.)
January 27 Paid for the January 3 purchase.
April 1 Received $89,000 from Atlantic Bank after signing a 12-month, 6.0 percent promissory note.
June 13 Purchased merchandise on account at a cost of $9,800.
July 25 Paid for the June 13 purchase.
July 31 Rented out a small office in a building owned by Tiger Company and collected eight months' rent in advance
amounting to $9,800.
December 31 Determined wages of $21,000 were earned but not yet paid on 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 rent.
Required:
1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.
2. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Tiger Company's
debt-to-assets ratio is less than 1.0.)
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 calcula
stockholders equity with a minus sign. Enter your answers in transaction order provided in the problem statement.)
Date
January 03
January 27
April 01
June 13
July 25
Assets
Liabilities
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