1.

Prepare journal entries for each of the transactions.

1.Record the purchase of inventory of $24,000 on account.

2. Record the payment for inventory in full.

3. Record the borrowing of $80,000.

4.Record the purchase of inventory of $8,000 on account.

5. Record the payment for inventory in full.

6. Record the collection of eight months’ rent in advance amounting to $8,000.

2.	Prepare any adjusting entries required on December 31, 2013. 1. Record the wages earned, but not yet paid as of December 31. 2. Record the adjusting entry relating to interest. 3. Record the adjusting entry relating to rent.

Tiger Company completed the following transactions during 2013. The annual accounting period ends December 31, 2013. Jan. 3 Purchased merchandise on account at a cost of $24,000. (Assume a perpetual inventory system.) 27 Paid for the January 3 purchase. Apr. 1 Received $80,000 from Atlantic Bank after signing a 12-month, 5 percent, promissory note. June 13 Purchased merchandise on account at a cost of $8,000. July 25 Paid for the June 13 purchase. Aug. 1 Rented out a small office in a building owned by Tiger Company and collected eight months' rent in advance amounting to $8,000. (Use an account called Unearned Rent Revenue.) Dec. 31 Determined wages of $12,000 were earned but not yet paid on 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 rent.