Question
EZ Curb Company completed the following transactions. The annual accounting period ends December 31. Jan. 8 Purchased merchandise on account at a cost of $14,000.
| EZ Curb Company completed the following transactions. The annual accounting period ends December 31. |
| Jan. 8 | Purchased merchandise on account at a cost of $14,000. (Assume a perpetual inventory system.) |
| 17 | Paid for the January 8 purchase. |
| Apr. 1 | Received $40,000 from National Bank after signing a 12-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 Company and collected six months? rent in advance, amounting to $6,000. (Use an account called Unearned Revenue.) |
| Dec. 20 | Collected $100 cash on account from a customer. |
| 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. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
