Ez Curb Company complotod the following transactions. Tho annual accountng porio

Question

Ez Curb Company complotod the following transactions. Tho annual accountng poriod onds Dacomber 31 Jan. 8 Purchased merchandise on account at a cost of $20 000. (Assume a perpetual inventory system 17 Paid for the January 8 purchase Apr. 1 Received $49,600 from National Bank after signing a 12-month, 12.0 percent promissory note June 3 Purchased merchandise on account at a cost of 524000 July 5 Paid for the June 3 purchaae Aug. 1 Rented out a small office in a bulding owned by EZ Curt Company and collected six months rent in advance, amounting to 59,600 (Use an account called Unearned Revenue) Dec 20 Collected 5220 cash on account from a customer Dec 31 Detemined hat wages of 58,900 were earned but not yet paid on December 31 (ignore payroll Dec 31 Adjusted the accounts at year-end, relating to interest Doc. 31 Adjustod tho accounts at year-ond relating to ront 1. Prepare journal entries for each of the transactions through December 20 (lIf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the purchase of inventory for s20,000 on account 2 Record the payment for inventory in full 3 Record the borrowing of $49,600. 4 Record the purchase of inventory for s24,000 on account. 5 Record the payment for inventory in full. 6 Record the collection of six months rent in advance amounting to $9,600 7 Record the receipt of a deposit from a customer of $220. Note:journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

                      
Journal Entries                      
Date   Account titles & Explanations                Debit   Credit
                      
8-Jan   Merchandise inventory               20,000  
   Accounts payable                    20,000
                      
17-Jan   Accounts payable               20000  
   cash                    20,000
                      
1-Apr   Cash               49,600  
   Notes payable                    49,600
                      
3-Jun   Merchandise inventory               24,000  
   Accounts payable                    24,000
                      
5-Jul   Accounts payable               24,000  
   cash                    24,000
                      
                      
1-Aug   Cash               9,600  
   unearned revenue                    9,600
                      
20-Dec   Cash               220  
   Account recivable                    220
                      
                      
   Adjusting Entries                  
                      
                      
31-Dec   Wage expense               8,900  
   Wages payable                    8,900
                      
31-Dec   interest expense               4464  
   interest payable                   4464
   (49,600*12%*9/12)                  
                      
31-Dec   unearned revenue               8000  
   Revenue earned                     8,000
   (9600/6*5)                  
                      
                      
                      
3)   Balance sheet (partial)                  
                      
   current liabilities                  
   Wages payable               8,900  
   interest payable               4,464  
   unearned revenue                1,600  

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.