Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $465,000 from Commerce Bank after signing a 12-month, 7 percent, promissory note. June 6 Purchased merchandise on account at a cost of $66,000. (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 $18,600. Dec. 31 Determined salary and wages of $31,000 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: 1. & 2. Make 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. Required 1 and 2 Record the borrowing of $465,000. (Note: Enter debits before credits.) Date General Journal Debit Credit Apr 30 [ ] [ ] [ ] Record the purchase of inventory worth $66,000 on account. (Note: Enter debits before credits.) Date General Journal Debit Credit Jun 06 [ ] [ ] [ ] Record the payment for inventory in full. (Note: Enter debits before credits.) Date General Journal Debit Credit Jul 15 [ ] [ ] [ ] Record the collection of six month's security service fees in advance amounting to $18,600. (Note: Enter debits before credits.) Date General Journal Debit Credit Aug 31 [ ] [ ] [ ] Record the wages earned, but not yet paid as of December 31. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31 [ ] [ ] [ ] Record the adjusting entry relating to interest. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31 [ ] [ ] [ ] Record the adjusting entry relating to security service fees. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31 [ ] [ ] [ ] Required 3 Show how all of the liabilities arising from these items are reported on the balance sheet at December 31. (Do not round intermediate calculations.) JACK HAMMER COMPANY Balance Sheet (partial) At December 31 [Assets OR Current Assets OR Current Liabilities OR Stockholders' Equity] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [Assets OR Current Assets OR Current Liabilities OR Stockholders' Equity [ $ Total ]
Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.
Apr. 30 Received $465,000 from Commerce Bank after signing a 12-month, 7 percent, promissory note.
June 6 Purchased merchandise on account at a cost of $66,000. (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 $18,600.
Dec. 31 Determined salary and wages of $31,000 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:
- 1. & 2. Make
journal entries for each of the transactions through August 31 andadjusting 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.
Required 1 and 2
- Record the borrowing of $465,000. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Apr 30 [ ] [ ] [ ]
- Record the purchase of inventory worth $66,000 on account. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Jun 06 [ ] [ ] [ ]
- Record the payment for inventory in full. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Jul 15 [ ] [ ] [ ]
- Record the collection of six month's security service fees in advance amounting to $18,600. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Aug 31 [ ] [ ] [ ]
- Record the wages earned, but not yet paid as of December 31. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Dec 31 [ ] [ ] [ ]
- Record the adjusting entry relating to interest. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Dec 31 [ ] [ ] [ ]
- Record the adjusting entry relating to security service fees. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Dec 31 [ ] [ ] [ ]
Required 3
Show how all of the liabilities arising from these items are reported on the balance sheet at December 31. (Do not round intermediate calculations.)
JACK HAMMER COMPANY
Balance Sheet (partial)
At December 31
[Assets OR Current Assets OR Current Liabilities OR
[ ] [ ]
[ ] [ ]
[ ] [ ]
[ ] [ ]
[ ] [ ]
[Assets OR Current Assets OR Current Liabilities OR Stockholders' Equity [ $ Total ]
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