Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.

Apr.30Received $672,000 from Commerce Bank after signing a 12-month, 9.00 percent, promissory note.June6Purchased merchandise on account at a cost of $81,000. (Assume a perpetual inventory system.)July15Paid for the June 6 purchase.Aug.31Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $27,000.Dec.31Determined salary and wages of $46,000 were earned but not yet paid as of December 31 (ignore payroll taxes).Dec.31Adjusted the accounts at year-end, relating to interest.Dec.31Adjusted 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.)