Using data from CP10-1, complete the following requirements.

Data From CP10-1

EZ Curb Company completed the following transactions. The annual accounting period ends December 31.

Required:

1. Prepare journal entries for each of the transactions through December 20.
2. Prepare any adjusting entries required on December 31.
3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31.
4. Complete requirement 2 of CP10-1, if you have not already done so.

Transcribed Image Text:

Jan. 8 Purchased merchandise on account at a cost of $14,000. (Assume a perpetual inventory system.) Jan. 17 Paid for the January 8 purchase. Received $40,000 from National Bank after signing a 12-month, 6 percent, promissory note. Apr. 1 June 3 Purchased merchandise on account at a cost of $18,000. July 5 Paid for the June 3 purchase. July 31 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 Deferred Revenue.) Dec. 20 Collected $100 cash on account from a customer. Dec. 31 Determined that wages of $6,500 were earned but not yet paid on December 31 (ignore payroll taxes). Adjusted the accounts at year-end, relating to interest. Dec. 31 Dec. 31 Adjusted the accounts at year-end, relating to rent.