Assume that EZ Curb completed the following transactions during 2017. December 31, 2017 is the end of the annual accounting period.

Jan. 8 Purchased merchandise on account at a cost of $14,000 (Assume a perpetual inventory system.)

Jan. 17 Paid for the January 8 purchase

Apr. 1 Received $40,000 from National Bank after signing a twelve-month, 6 percent, promissory note

June 3 Purchased merchandise on account at a cost of $18,000

July 5 Paid for the June 3 purchase

Aug. 1 Rented out a small office in a building owned by EZ Curb and collected six months? rent in advance, amounting to $6,000 (Use an account called Deferred Rent Revenue.)

Dec. 20 Received a $100 deposit from a customer as a guarantee to return a large trailer ?borrowed? for thirty days

TIP: Consider whether EZ Curb has an obligation to return the money when the trailer is returned.

Dec. 31 Determined that wages of $6,500 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:

2. For each transaction and related adjusting entry, state whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume EZ Curb?s debt-to-assets ratio has always been less than 1.0.)

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Liabilities Assets Shareholders' Equity Date