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.
