Tiger Company completed the following transactions during 2013. The annual accounting period ends December 31, 2013.
Jan. 3 Purchased merchandise on account at a cost of $24,000. (Assume a perpetual inventory system.)
27 Paid for the January 3 purchase.
Apr. 1 Received $80,000 from Atlantic Bank after signing a 12-month, 5 percent, promissory note.
June 13 Purchased merchandise on account at a cost of $8,000.
July 25 Paid for the June 13 purchase.
Aug. 1 Rented out a small office in a building owned by Tiger Company and collected eight months' rent in advance amounting to $8,000. (Use an account called Unearned Rent Revenue.)
Dec. 31 Determined wages of $12,000 were earned but not yet paid on 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 rent.
Required:
1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects (+ for increase, - for decrease, and NE for no effect) on the accounting equation, using the following format
Date Assets = Liabilities + Stockholders' Equity
2. For each item, state whether the quick ratio is increased, decreased, or there is no change.
(Assume Tiger Company's quick ratio is greater than 1.0.)