EZ Curb Company completed the following transactions The annual accounting period ends December 31 Jan 8 Purchased merchandise on account at a cost of $26,000. (Assume a perpetual inventory system.) 17 Paid for the January 8 purchase Apr June 3 Purchased merchandise on account at a cost of $30,000 July 5 Paid for the June 3 purchase

CP10-1 Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5] EZ Curb Company completed the following transactions. The annual accounting period ends December 31 Jan. 8 Purchased merchandise on account at a cost of $26,000. (Assume a perpetual inventory system.) 17 Paid for the January 8 purchase Apr. 1 Received $59,200 from National Bank after signing a 12-month, 18 0 percent, promissory note June 3 Purchased merchandise on account at a cost of $30,000 July 5 Paid for the June 3 purchase. Aug. 1 Rented out a small office in a building owned by EZ Curb Company and collected six months rent in advance, amounting to $13,200. (Use an account called Unearned Revenue.) Dec. 20 Collected $340 cash on account from a customer Dec. 31 Determined that wages of $11,300 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 or 1 July 5 Dec 20 Dec 31 Dec 31 2. For each transaction and relaed adusting enby, indicate whether the debt-to-assels ratio is ncreased o decreased or there s no change (Assume EZ Curb Companys dett to assets ratio has always been ess than 10) (Enter your answers in transaction order provided in the problem statement) Apr 1 July 5 Aug 1 Dec 31 31