ezto.mheducation.com/hm.tpx Bookmarks ESCI 111 Quiz 10F CP10-2 Recording and Rep

Question

ezto.mheducation.com/hm.tpx Bookmarks ESCI 111 Quiz 10F CP10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the EZ Curb Company completed the following transactions. The annual accounting period ends December 31. Jan. 8 Purchased merchandise on account at a cost of $22,000. (Assume a perpetual inventory system.) 17 Paid for the January 8 purchase. Apr. 1 Received $52,800 from National Bank after signing a 12-month, 14.0 percent, promissory note. June 3 Purchased merchandise on account at a cost of $26,000. 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 $10,800. (Use an account called Unearned Revenue.) Dec. 20 Collected $260 cash on account from a customer Dec. 31 Determined that wages of $9,700 were earned but not yet paid on December 31 (ignore payrol taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest Dec. 31 Adjusted the accounts at year-end, relating to rent. Required 1. Prepare journal entries for each of the transactions through December 20. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of inventory for $22,000 on account. Note: Enter debits before credits. Date General Journal Debit Credit

Explanation / Answer

1.

Journal entries through December 20 will be prepared as follows:

2.

Adjusting entries will be prepared as follows:

3.

Balance sheet will be prepared as follows:

Date Account Titles and Explanation Debit Credit Jan. 8 Merchadnise Inventory 22000       Accounts Payable 22000 Jan. 17 Accounts Payable 22,000       Cash 22000 Apr. 1 Cash 52800       Notes Payable 52800 Jun. 3 Merchadnise Inventory 26000       Accounts Payable 26000 Jul. 5 Accounts Payable 26000       Cash 26000 Aug. 1 Cash 10800       Unearned Revenue 10800 Dec. 20 Cash 260       Accounts Receivable 260

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