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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

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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 $670,000 from Coemerce Bank after signing a twelve-month, 6 percent, promiasory note June 6 Purchased merchandise on account at a cost of $82,000 (Assume a perpetual inventory system.) July 15 Paid for the June 6 parehase Aug. 31 Signed a contract to provide security services to a small apartment complex and collected six montha, feen in advance, amounting to $25,050 (Use an account called Deferrad fevenue.) Dec. 31 Determined salary and wages of $47,000 were earned but not yet paid as of Docember 31 (1gnore payrol1 taxes) Dec. 31 Adjusted the accounts at year-end, relating to intereat Dec. 31 Adjusted the accounts at year-end, relating to security services. Required: 1. Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Received $670,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note. Note: Enper dobits before credits. Dec. 31 Adjusted the accounte at year-end, relating to security nervicen Required: 1. Prepare journal entries for each of the transactions, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Received $670,000 from Commerce Bank after signing a twelve-month, 6 percent, promissory note. Note: Enter debits before credits. 2. Prepare all adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Determined salary and wages of $47,000 were earned but not yet paid as of December 31 (ignore payroll taxes). Note: Enter debits before credits. 3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31

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