of the Effects on the LO9-1,4-2,9-6 AP9-1 "9-1 The company's fiscal yea al years 500, with terms 2/10, Recording and Report Recording and Reporting Current Liabilities with Discussion of th Ratio (P9-1) Computek Ltd. completed the following transactions during 2018. The com December 31, 2018. Jan. 8 Purchased on account merchandise for resale at a cost of $14.500 The company uses a periodic inventory system. 19 Paid the invoice received on January 8. Mar. 10 Sold merchandise on credit for a total amount of $11,300, which incl and PST at 8 percent of the sales amount. Apr. 1 Borrowed $35,000 from the bank for general use; signed a 12-month. 6 bearing note. June 3 Purchased merchandise for resale at a cost of $16,420. July 5 Paid the invoice received on June 3. included GST at 5 per month, 6 percent interest. lected $6,000 for six lection in a way that will Aug, 1 Rented a small office in a building owned by the company and collected sa months' rent in advance. Ignore sales taxes. (Record the collection in a require an adjusting entry at year-end.) Dec. 20 Received a $100 refundable deposit from a customer as a guarantee to retum ale "borrowed" for 30 days. 31 Determined that wages earned but not yet paid on December 31 amounted to go payroll taxes. arantee to return a large traile Required: 1. Prepare the journal entry for each of these transactions. 2. Prepare the adjusting entry (entries) required on December 31, 2018. 3. Show how all of the liabilities arising from these transactions are reported on the statement of financial position at December 31, 2018. 4. For each transaction and related adjusting entry, state whether the quick ratio increases, decreases, or remains the same. Assume that the quick ratio is less than 1.0 before conside each transaction 109-1,9-6 AP9-2 Determining Financial Effects of Transactions Affecting Current al Discussion of Cash Flow Fff Tecting Current Liabilities with of the Effects on the LO9-1,4-2,9-6 AP9-1 "9-1 The company's fiscal yea al years 500, with terms 2/10, Recording and Report Recording and Reporting Current Liabilities with Discussion of th Ratio (P9-1) Computek Ltd. completed the following transactions during 2018. The com December 31, 2018. Jan. 8 Purchased on account merchandise for resale at a cost of $14.500 The company uses a periodic inventory system. 19 Paid the invoice received on January 8. Mar. 10 Sold merchandise on credit for a total amount of $11,300, which incl and PST at 8 percent of the sales amount. Apr. 1 Borrowed $35,000 from the bank for general use; signed a 12-month. 6 bearing note. June 3 Purchased merchandise for resale at a cost of $16,420. July 5 Paid the invoice received on June 3. included GST at 5 per month, 6 percent interest. lected $6,000 for six lection in a way that will Aug, 1 Rented a small office in a building owned by the company and collected sa months' rent in advance. Ignore sales taxes. (Record the collection in a require an adjusting entry at year-end.) Dec. 20 Received a $100 refundable deposit from a customer as a guarantee to retum ale "borrowed" for 30 days. 31 Determined that wages earned but not yet paid on December 31 amounted to go payroll taxes. arantee to return a large traile Required: 1. Prepare the journal entry for each of these transactions. 2. Prepare the adjusting entry (entries) required on December 31, 2018. 3. Show how all of the liabilities arising from these transactions are reported on the statement of financial position at December 31, 2018. 4. For each transaction and related adjusting entry, state whether the quick ratio increases, decreases, or remains the same. Assume that the quick ratio is less than 1.0 before conside each transaction 109-1,9-6 AP9-2 Determining Financial Effects of Transactions Affecting Current al Discussion of Cash Flow Fff Tecting Current Liabilities with
