Jack Hammer Company completed the following transactions. The annual accounting

Question

Jack Hammer Company completed the following transactions. The annual accounting period ends December 31 Apr 30 Received $750,000 from Commerce Bank after signing a 12-month, 7 percent, promissory note June 6 Purchased merchandise on account at a cost of $85,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. Aug. 31 Signed a contract to provide security service to a small apartment complex and collected six months fees in advance amounting to $30,000. (Use an account called Unearned Revenue.) taxes) Adjusted the accounts at year-end, relating to security service Dec 31 Determined salary and wages of $50,000 wore eamed but not yet paid as of December 31 (gnore payroll Dec. 31 Adjusted the accounts at year-end, relating to interest Dec. 31 Required: 182. Complete the required journal entries for each of the above transactions. (Do not round intermediate calculations. If no entry is required for a transaction/event, select No Journal Entry Required" in the first account field.)

Explanation / Answer

30-Apr Bank A/c 750000 to 7% Notes Payable 750000 06-Jun Inventory A/c 85000 to Liabilities Payable 85000 15-Jul Liabilities Payable 85000 to Bank 85000 31-Aug Bank A/c 30000 to Unearned Revenue 30000 31-Dec Salary exp 50000 to Salary Payable 50000 31-Dec Unearned Revenue 20000 to Revenue 20000 31-Dec Interest exp 35000 to Interest Payable 350000 2.   Balance Sheet (Partial) 7% Notes Payable 750000 Salary Payable 50000 Unearned Revenue 10000 Interest Payable 35000

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