Ez curb company completed the following transactions during 2010. the

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 Rent Revenue.)

Dec. 20

Received a $100 deposit from a customer as a guarantee to return a large trailer “borrowed” for 30 days.

 

(TIP: Consider whether EZ Curb Company 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.