Question

value 25.00 points PB10-1 Determining Financial Effects of Transactions Affecting Current Liabilities wit Tiger Company completed the following transactions. The annual accounting period ends December 31 Jan. 3 Purchased merchandise on account at a cost of $36,000. (Assume a perpetual inventory Jan. 27 Apr. 1 system.) Paid for the January 3 purchase. Received $92,000 from Atlantic Bank after signing a 12-month, 7.5 percent promissory note. June 13 Purchased merchandise on account at a cost of $10,400 July 25 Paid for the June 13 purchase. Aug. 1 Rented out a small offce in a building owned py Tiger Company and collected eight months' rent in advance amounting to $10,400. (Use an account called Unearned Rent Revenue.) Determined wages of $24,000 were earned but not yet paid on December 31 (ignore payroll taxes). Dec. 31 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 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.) Assets Liabiliti Date Jan. 3 Jan. 27 Apr. 1 June 13 July 25 Aug. 1 Dec. 31 Dec. 31 Dec. 31

Answer 1

Date	Assets		=	Liabilities					+	Shareholders’ Equity
	Inventories	Cash		Accounts payable	Notes payable	Unearned revenue	Interest payable	Wages payable		Rent revenue	Wages expense	Interest expense
Jan. 3	$36000			$36000
Jan. 27		- $36000		- $36000
April 1		$92000			$92000
June 13	$10400			$10400
July 25		- $10400		- $10400
Aug. 1		$10400				$10400
Dec. 31								$24000			- $24000
Dec. 31							$5175					- $5175
Dec. 31						- $6500				$6500

Working Note;

1. Interest on note payable is calculated as follow;

($92000 * 0.075 * 9 / 12) = $5175

2. Rent revenue will be calculated as follow;

($10400 * 5 / 8) = $6500