Using data from PA10-1, complete the following requirements. Info PA10-1 Apr. 30 Received $ 600,000 from Commerce

Question:

Using data from PA10-1, complete the following requirements.
Info PA10-1
Apr. 30 Received $ 600,000 from Commerce Bank after signing a 12-month, 6 percent, promissory note.
June 6 Purchased merchandise on account at a cost of $ 75,000. (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 $ 24,000. (Use an account called Unearned Revenue.)
Dec. 31 Determined salary and wages of $ 40,000 were earned but not yet paid as of December 31 (ignore payroll taxes).
Dec. 31 Adjusted the accounts at year-end, relating to interest.
Dec. 31 Adjusted the accounts at year-end, relating to security service.
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 at December 31.
4. Complete requirement 2 of PA10-1, if you have not already done so. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...