Jack Hammer Company completed the following transactions. The annual accounting period ends December 31 Apr. 30 Received $548,eee from Commerce Bank after signing a 12-month, 5 percent, promissory note. June 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 6 Purchased merchandise on account at a cost of $71,eee. (Assume a perpetual inventory system.) fees in advance amounting to $21,600. Dec. 31 Determined salary and wages of $36,e00 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. 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 2 Journal entry worksheet 2 K 6 16.66 points Record the borrowing of $540,000. eBook Note: Enter debits before credits. Print Date General Journal Debit Credit 540,000 Cash Apr 30 Notes Payable (short-term) 540,000 Record entry Clear entry View general journal Mc 2 View transaction list X 16.66 points Record the purchase of inventory worth $71,000 on account. eBook Record the payment for inventory in full. Print Record the collection of six month's security service fees in advance amounting to $21,600. 3 Record the wages earned, but not yet paid as of December 31. it Credit i,000 O Record the adjusting entry relating to interest. 36,000 Record the adjusting entry relating to security service fees. Req 1 and 2 Req 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) ok At December 31 Current Liabilities nt 540,000 21,600 36,000 Notes Payable (short-term) Deferred Revenue Salaries and Wages Payable 18,000 Interest Payable 615,600 Req 3 Req 1 and 2