the cash payment to the face value terest rate? wount of interest expense should be reported on the income statement cach ye how the bonds should be reported on the balan balance sheet at the end of 2015 and 2016. What amount Show how the o statement each year? GROUP A PROBLEMS 0-1 Determining ! Liabilities with Evalu 10-1 ermining Financial Effects of Transactions Affecting Current hilities with Evaluation of Effects on the Debt-to-Assets Ratio connect er Company completed the following transactions The annual accounting period and LO 10-2, 10-5 Jack Hammer December 31. Apr. 30 R June 6 6 July 15 Paid for Aug 31 Received $600,000 from Commerce Bank after signing a 12-month. o po promissory note. Purchased merchandise on account at a cost of $15.000 (Assume a perpetual inventory system.) Paid for the June 6 purchase. Signed a contract to provide security service to a small apartment complex and collected six months' fees in advance amounting to $24,000. (Use an account called Unearned Revenue.) Determined salary and wages of $40.000 were earned but not yet paid as December 31 (ignore payroll taxes). Adjusted the accounts at year-end, relating to interest. Adjusted the accounts at year-end, relating to security service. Dec. 31 Dec. 31 Dec 31 Required: For each listed transaction and related adjusting entry indicate the accounts, amounts, and effects (+ for increase, - for decrease, and NE for no effect) on the accounting equation, using the following format: Date Assets = Liabilities + Stockholders' Equity 2 For each item, state whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer's debt-to-assets ratio is less than 1.0.) LO 10-2, 10-5 PA10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio Using data from PA10-1, complete the following requirements. Required: 1. Prepare journal entries for each of the transactions through August 31. 2. Prepare all 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. 4. Complete requirement 2 of PA10-1, if you have not already done so