Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiger Company completed the following transactions. The annual accounting period ends December 31. January 3 Purchased merchandise on account at a cost of $26 ,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Tiger Company completed the following transactions. The annual accounting period ends December 31. January 3 Purchased merchandise on account at a cost of $26 , 600 . (Assume a perpetual inventory system.) January 27 Paid for the January 3 purchase. April 1 Received $82 , 000 from At lantic Bank after signing a 12-month, 6.0 percent promissory note. June 13 Purchased merchandise on account at a cost of $8 , 460 . July 25 Paid for the June 13 purchase. July 31 Rented out a small office in a building owned by Tiger company and collected eight months' rent in advance amounting to $8 , 400 . December 31 Determined wages of $14 , 000 were earned but not yet paid on December 31 (ignore payroll taxes). December 31 Adjusted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to rent. Required: 1. \& 2. Prepare journal entries for each of the transactions through August 1 and any 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 . 1 Purchased merchandise on account at a cost of $26 , 000 . (Assume a perpetual inventory system.) Record the transaction. 2 Paid for the January 3 purchase. Record the transaction. 3 Received $82 , 000 from Atlantic Bank after signing a 12month, 6 percent promissory note. Record the transaction. 4 Purchased merchandise on account at a cost of 8,400 . Record the transaction. 5 Paid for the June 13 purchase. Record the transaction. 6 Rented out a small office in a building owned by Tiger Company and collected eight months' rent in advance amounting to $8 , 400 . Record the transaction. 7 Determined wages of $14 , 000 were earned but not yet paid on December 31 (Ignore payroll taxes). Record the transaction. 8 Adjusted the accounts at year-end, relating to interest. Record the transaction. 9 Adjusted the accounts at year-end, relating to rent. Record the transaction. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31 . (Do not round intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

More Books

Students also viewed these Accounting questions