Tiger Company completed the following transactions. The annual accounting period
ID: 2429628 • Letter: T
Question
Tiger Company completed the following transactions. The annual accounting period ends December 31.
Purchased merchandise on account at a cost of $28,000. (Assume a perpetual inventory system.)
Rented out a small office in a building owned by Tiger Company and collected eight months’ rent in advance amounting to $8,800. (Use an account called Unearned Rent Revenue.)
Determined wages of $16,000 were earned but not yet paid on December 31 (ignore payroll taxes).
Tiger Company completed the following transactions. The annual accounting period ends December 31.
Required 1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Enter your answers in transaction order provided in the problem statement.) Date Assets Liabilities Stockholders' Equity Jan. 3 Jan. 27 Apr. 1 June 13 July 25 Aug. 1 Dec. 31 Dec. 31 Dec. 31Explanation / Answer
1.
2. Debt-to-assets ratio = Total liabilities/Total assets
Date Assets = Liabilities + Stockholders' Equity Jan. 3 Inventory 28000 Accounts payable 28000 Jan. 27 Cash -28000 Accounts payable -28000 Apr. 1 Cash 84000 Notes payable 84000 June 13 Inventory 8800 Accounts payable 8800 July 25 Cash -8800 Accounts payable -8800 Aug. 1 Cash 8800 Unearned rent revenue 8800 Dec. 31 Wages payable 16000 Retained earnings (Wages expense) -16000 Dec. 31 Interest payable 4410 Retained earnings (Interest expense) -4410 Dec. 31 Unearned rent revenue -5500 Retained earnings (Rent revenue) 5500