EZ Curb Company completed the following transactions The annual accounting period ends December 31 January 8 Purchased merchandise on account at a cost of $17,500 (Assume a perpetual inventory system ) January 17 Paid for the January 8 purchase April 1 Received $45,600 from National Bank after signing a 12 month, 9 5 percent, promissory note June 3 Purchased merchandise on account at a cost of $21,500 July 5 Paid for the June 3 purchase July 31 Rented out a small office in a building owned by EZ Curb Company and collected six months rent in advance, amounting to $8,100 (Use an account called Deferred Revenue ) December 20 Collected $170 cash on account from a customer December 31 Determined that wages of $7,900 were earned but not yet paid on December 31 (Ignore payroll taxes) December 31 Adjusted the accounts at year end, relating to interest December 31 Adjusted the accounts at year end, relating to rent Required For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation For each transaction and related adjusting entry, indicate whether the debt to assets ratio is increased or decreased or there is no change (Assume EZ Curb Companys debt to assets ratio has always been less than 1 0 )

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Posted on Sep 10, 2024

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

January 8	Purchased merchandise on account at a cost of $17,500. (Assume a perpetual inventory system.)
January 17	Paid for the January 8 purchase.
April 1	Received $45,600 from National Bank after signing a 12-month, 9.5 percent, promissory note.
June 3	Purchased merchandise on account at a cost of $21,500.
July 5	Paid for the June 3 purchase.
July 31	Rented out a small office in a building owned by EZ Curb Company and collected six months rent in advance, amounting to $8,100. (Use an account called Deferred Revenue.)
December 20	Collected $170 cash on account from a customer.
December 31	Determined that wages of $7,900 were earned but not yet paid on December 31 (Ignore payroll taxes).
December 31	Adjusted the accounts at year-end, relating to interest.
December 31	Adjusted the accounts at year-end, relating to rent.

Required:

For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.
For each transaction and related adjusting entry, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume EZ Curb Companys debt-to-assets ratio has always been less than 1.0.)