PA10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO10-2, LO10-5] Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $650,000 from Commerce Bank after signing a twelve-month, 7 percent, promissory note June 6 Purchased merchandise on account at a cost of $80,000 (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase Aug. 31 Signed a contract to provide security services to a small apartment complex and collected six months' fees in advance, amounting to $24,750 (Use an account called Deferred Revenue.) Dec. 31 Determined salary and wages of $45,000 were earned but not yet paid as of 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 security services View transaction list Journal entry worksheet < 1 2 3 4 Received $650,000 from Commerce Bank after signing a twelve-month, 7 percent, promissory note. Note: Enter debits before credits. Date Apr 30 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 4 Purchased merchandise on account at a cost of $80,000 (Assume a perpetual inventory system.) Note: Enter debits before credits. Date Jun 06 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 4 Paid for the June 6 purchase. Note: Enter debits before credits. Date Jul 15 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 Signed a contract to provide security services to a small apartment complex and collected six months' fees in advance, amounting to $24,750 (Use an account called Deferred Revenue.) Note: Enter debits before credits. Date Aug 31 General Journal Debit Credit Record entry Clear entry View general journal