Jack Hammer Company completed the following transactions. The annual accounting period ends December 31 April 38 Received $680,088 from Commerce Bank after signing a 12-month, 6 percent, promissory note. June 6 Purchased merchandise on account at a cost of $75,000. (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 $24,080. December 31 Determined salary and wages of $40,000 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. 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 Jack Hammer's debt-to-assets ratio is less than 1.0.) Answer is not complete. 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 calculations. Round your answers to the nearest whole dollar. Enter any decreases to assets, llabilities, or stockholders equity with a minus sign. Enter your answers in transaction order provided in the problem statement.) Assets Stockholders' Equity x Date April 30 June 6 July 15 August 31 X Cash Common Stock Cash Cash 500,000 75,000 (75000) = 24,000 - Liabilities Notes Payable (long-term) Accounts Payable Accounts Payable Deferred Revenue Salanes and Wages Payable 500 000 75 000 (75000) 24 000 . + December 31 (24.000) X + Retained Earnings x (24.000) X December 31 = Interest Payable (2.000) + X Retained Eamings Retained Earnings (2.000) 16,000 December 31 Deferred Revenue (16000) X Required Required 2 > Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $600,000 from Commerce Bank after signing a 12-month, 6 percent, promissory note. June 6 Purchased merchandise on account at a cost of $75,000. (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 $24,000. December 31 Determined salary and wages of $40,000 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. 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 Jack Hammer's debt-to-assets ratio is less than 1.0.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 2 *** ...................... . For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer's debt-to-assets ratio is less than 1.0.) (Enter your answers in transaction order provided in the problem statement.) Date Effect on Ratio Numerator Denominator April 30 June 6 July 15 August 31 December 31 December 31 December 31
