Using data from PB10-1, complete the following requirements.
Data PB10-1
Jan. 3 Purchased merchandise on account at a cost of $ 24,000. (Assume a perpetual inventory system.) Jan. 27 Paid for the January 3 purchase.
Apr. 1 Received $ 80,000 from Atlantic Bank after signing a 12-month, 5 percent proissory 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 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. Prepare journal entries for each of the transactions through August 1.
2. Prepare any 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.
4. Complete requirement 2 of PB10-1, if you have not already done so.