Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $690,000 from Commerce Bank after signing a 12-month, 6 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. 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 $27,600. December 31 Determined salary and wages of $46,000 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 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 3 4 5 6 7 Record the borrowing of $690,000. Note: Enter debits before credits. Date April 30 General Journal Debit Credit Prev 3 of 6 Next
Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $690,000 from Commerce Bank after signing a 12-month, 6 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. 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 $27,600. December 31 Determined salary and wages of $46,000 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 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 3 4 5 6 7 Record the borrowing of $690,000. Note: Enter debits before credits. Date April 30 General Journal Debit Credit Prev 3 of 6 Next
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8PA: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions...
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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Transcribed Image Text:Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.
April 30 Received $690,000 from Commerce Bank after signing a 12-month, 6 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.
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 $27,600.
December 31 Determined salary and wages of $46,000 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.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 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
3
4
5
6
7
Record the borrowing of $690,000.
Note: Enter debits before credits.
Date
April 30
General Journal
Debit
Credit
Prev
3 of 6
Next
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