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PA10-2 (Algo) Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-toAssets Ratio [LO 10-2, LO 10-5] Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apri1 30 Received $480,000 fron Coemerce Bank after signing a 12-month, 6 percent, promissory note. June 6 Purchased merchandise on account at a cost of 567,000 . (Assume a perpetual inventory systen.) July is paid for the June 6 purchase. August 31 Signed a contract to provide security service to a sanll apartaent conplex starting in September, and collected six months' fees in advance, amounting to $19,200. Decenber 31 Determined salary and wages of $32,600 were earned but not yet paid as of Decenber 31 (ignore payroll takes). Deccaber 31 Adjusted the accounts at year-end, relating to interest. Decenber 31 Adjusted the accounts at year-end, relating to security service. Required: 1. \& 2. Prepare journal entries for each of the transactions through August 31 and 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 Prepare foumal entries for each of the transactions through August 31 and adjusting entries required on December 31 . (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first account field.) Journal entry worksheet Journal entry worksheet Record the purchase of inventory worth $67,000 on account. Note: Enter debits before credits. Journal entry worksheet

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