Question
Need help solving this. PB10-1 Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5]
Need help solving this.
PB10-1 Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5]
Tiger Company completed the following transactions. The annual accounting period ends December 31. |
Jan.3 | Purchased merchandise on account at a cost of $43,000. (Assume a perpetual inventory system.) |
Jan.27 | Paid for the January 3 purchase. |
Apr.1 | Received $99,000 from Atlantic Bank after signing a 12-month, 8.0 percent promissory note. |
June13. | Purchased merchandise on account at a cost of $11,800. |
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 $11,800. (Use an account called Unearned Rent Revenue.) |
Dec.31 | Determined wages of $31,000 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. |
Required: |
1. | For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Enter your answers in transaction order provided in the problem statement.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started