Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.April 30 Received $672,000 from Commerce Bank after signing a 12-month, 9.00 percent, promissory note.June 6 Purchased merchandise on account at a cost of $81,00e. (Assume a perpetual inventory system.)July 15 Paid for the June 6 purchase.August 31signed a contract to provide security service to a small apartment complex starting in September, and collected sixmonths fees in advance, amounting to $27,000.December 31 Determined salary and wages of $46,800 were earned but not yet paid as of 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 security service.Required:1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.2. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer'sdebt-to-assets ratio is less than 1.0.)Complete this question by entering your answers in the tabs below.Required 1 Required 2For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Round your answers to the nearest whole dollar. Enter any deliabilities, or stockholders equity with a minus sign. Enter your answers in transaction order provided in the problem statement.)DateApril 30June 6July 15August 31December 31December 31December 31AssetsLiabilities< Required 1Required 2 >++Stockholders' Equity Jack Hammer Company completed the following transactions. The annual accounting period ends December 31.April 30 Received $672,000 from Commerce Bank after signing a 12-month, 9.00 percent, promissory note.June 6 Purchased merchandise on account at a cost of $81,000. (Assume a perpetual inventory system.)July 15 Paid for the June 6 purchase.August 31Signed a contract to provide security service to a small apartment complex starting in September, and collected sixmonths' fees in advance, amounting to $27,000.December 31 Determined salary and wages of $46,000 were earned but not yet paid as of 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 security service.Required:1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.2. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer'sdebt-to-assets ratio is less than 1.0.)Complete this question by entering your answers in the tabs below.Required 1 Required 2For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume JackHammer's debt-to-assets ratio is less than 1.0.) (Enter your answers in transaction order provided in the problem statement.)Effect on RatioDateApril 30June 6July 15August 31December 31December 31December 31NumeratorDenominator

Accounting Equation: It is also known as a basic accounting equation. It provides the foundation for…

pril 30 Received $672,000 from Commerce Bank after signing a 12-month, 9.00 percent, promissory note. June 6 Purchased merchandise on account at a cost of $81,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. gust 31 signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $27,000. aber 31 Determined salary and wages of $46,000 were earned but not yet paid as of December 31 (ignore payroll taxes). mber 31 Adjusted the accounts at year-end, relating to interest. mbar 31 Adjusted the accounts at year-end, relating to security service. wired: or each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. or each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer's abt-to-assets ratio is less than 1.0.) omplete this question by entering your answers in the tabs below. equired 1 Required 2 each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Round your answers to the nearest whole dollar. Ente bilities, or stockholders equity with a minus sign. Enter your answers in transaction order provided in the problem statement.) Date 30 15 Assets Liabilities Stockholders' Equity

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...