Chapter 10 HW .> C | ezto.mheducation.com/hm.tpx CP10-1 Determining Financial Ef

Question

Chapter 10 HW .> C | ezto.mheducation.com/hm.tpx 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 annuall accounting period ends December 31 Jan. 8 Purchased merchandise on account at a cost of $25,500. (Assume a perpetual inventory system.) 17 Paid for the January 8 purchase Apr. 1 Received $58,400 from National Bank after signing a 12-month, 17.5 percent, promissory note. June 3 Purchased merchandise on account at a cost of S29,500 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 $12,900. (Use an account called Unearned Revenue.) Dec. 20 Col lected S330 cash on account from a customer Dec. 31 Determined that wages of $11,100 were earned but not yet pald 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 Required: 1. For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Enter your answers in transaction order provided in the problem te ssets Equity Jan. 8 Jan. 17 Apr. 1 June 3 July 5 Aug. 1 Dec. 20 Dec. 31 Dec. 31 Dec. 31 O Type here to search 7-27 PM 11/30/2017

Explanation / Answer

Date Assets = Liabilities + Stockholders' Equity Jan 8 Merchandise inventory 25500 = Accounts payable 25500 + Jan 17 Cash -25500 = Accounts payable -25500 + Apr 1 Cash 58400 = Notes payable 58400 + June 3 Merchandise inventory 29500 = Accounts payable 29500 + July 5 Cash -29500 = Accounts payable -29500 + Aug 1 Cash 12900 = Unearned revenue 12900 + Dec 20 Cash 330 = + Accounts Receivable -330 = + Dec 31 = Wages payable 11100 + Retained earnings (wages expense) -11100 Dec 31 = Interest payable (58400*17.5%*9/12) 7665 + Retained earnings (interest expense) -7665 Dec 31 = Unearned revenue (12900*5/6) -10750 + Retained earnings (rent revenue) 10750

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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