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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

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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 $585,000 from Conmerce Bank after nigning a 12-month, 5 percent, promissory note. June 6 purchased merchandise on account at a cost of $74,000. (Assume a perpetual inventory system.) July 15 paid for the June 6 purchase. Augunt 31 signed a contract to provide gecurity service to a saall apartment complex starting in september, and collected 61x months ' fees in advance, anounting to $23,400. December 31 betermined salary and wages of $39,000 were earned but not yot paid as of December 31 (Ignore payroll taxen). Decenber 31 Adjunted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to lecurity sorvice. 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 . Complete this question by entering your answers in the tabs below. Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31 . (Do not round intermed ate calculations. If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first account field.) Journal entry worksheet Journal entry worksheet 23 Note: Enter debits before credits. Journal entry worksheet Record the purchase of inventory worth $74,000 on account. Note: Enter debits before credits. Journal entry worksheet 5 Note: Enter debits before credits. Journal entry worksheet Record the collection of six month's security service fees in advance amounting to $23,400. Note: Enter debits before credits. Journal entry worksheet Record the wages earned, but not yet paid as of December 31 . Note: Enter debits before credits. Journal entry worksheet

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