Tiger Company completed the following transactions. The annual accounting period

Question

Tiger Company completed the following transactions. The annual accounting period ends December 31.

Purchased merchandise on account at a cost of $32,000. (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 $9,600. (Use an account called Unearned Rent Revenue.)

Determined wages of $20,000 were earned but not yet paid on December 31 (ignore payroll taxes).

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.)

For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Tiger Company’s debt-to-assets ratio is less than 1.0.) (Enter your answers in transaction order provided in the problem statement.)

Tiger Company completed the following transactions. The annual accounting period ends December 31.

31, valu 12.00 points Tiger Company completed the following transactions. The annual accounting period ends December 31 Jan 3 Purchased merchandise on account at a cost o $32,000. (Assume a perpetual inventory system.) Jan 27 Paid for the January 3 purchase Apr. 1 Received $88,000 from Atlantic Bank atter signing a 12-month, 5.5 percent p June 13 Purchased merchandise on account at a cost of $9,600 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 note in advance amounting to $9,600. (Use an account called Unearned Rent Revenue.) Determined wages of S20,000 were earned but not yet paid on December 31 (ignore payroll taxes). Der 31 Dec. 31 Adjusted the accounts at year-end, relating to interest Der 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.) Date Assets abilities Stockholders Equity Jan. 3 Jan. 27 Apr. 1 June 13 July 25 Aug. 1 Dec. 31 Dec 31 Dec. 31

Explanation / Answer

Dec 31. Decrease. -6000. 0

Date assets amount liabilities amount share holder equity amount Jan 3 stock 32000 creditor 32000 Jan 27 bank -32000 creditor -32000 1st april bank 88000 short term debt 88000 June 13 inventory 9600 creditor 9600 July 25 bank -9600 creditor -9600 1st august bank 9600 un earned revenue 9600 31st December Wages outstanding 20000 expense -20000 31st December Interest outstanding 3600 expense -3600 31st December Unrealosed rent account -6000 Income 6000

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