PA10-2 (Algo) Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-toAssets Ratio [LO 10-2, LO 10-5] Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $750,000 from Commerce Bank after signing a 12 -month, 7 percent, promissory note. June 6 Purchased merchandise on account at a cost of $85,000. (Assume a perpetual inventory system.) July 15 paid for the June 6 purchase. collected six months' fees in advance, amounting to $30,000. 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. \& 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. Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31 . (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1 Record the borrowing of $750,000. 2 Record the purchase of inventory worth $85,000 on account. 3 Record the payment for inventory in full. 4 Record the collection of six month's security service fees in advance amounting to $30,000. 5 Record the wages earned, but not yet paid as of December 31. 6 Record the adjusting entry relating to interest. 7 Record the adilstins entry relatina to seruritv service Note : = journal entry has been entered Show how all of the liabilities arising from these items are reported on the balance sheet at December 31 . (Do not round intermediate calculations.)