EZ Curb Company has completed the following transactions. The annual accounting period ends on 31 December. Goods purchased on account at a cost of $26,000 on January 8th. (Assume a perpetual inventory system.) 17 The purchase made on January 8th was paid for. After signing the April 1 12-month 18.0 percent bond, he received $59,200 from the National Bank. June 3 Bought goods on account at a cost of $30,000. Paid for purchase on July 5th and June 3rd. August 1, EZ Curb Company rented a small office in a building and received a $13,200 six-month rent upfront. (Use an account called Unearned Income.) December 20 A customer was charged $340 in cash on the account. December 31 At December 31, wages of $11,300 were determined to have been earned but not yet paid (ignore payroll taxes). 31 December Year-end accounts for interest have been corrected. 31 December At the end of the year, the accounts related to rent have been corrected. Required: 1. Prepare journal entries for each of the transactions up to 20 December. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Record $26,000 of inventory purchases in the account.

2. Record the inventory payment in full.

3. Record the $59,200 borrowing.

4. Record $30,000 of inventory purchases in the account.

5. Record the inventory payment in full.

6. Record six months' rent collection of $13,200 upfront.

7. Record a $340 deposit receipt from a customer.

2

Prepare the necessary correction entries on 31 December . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round up intermediate calculations.)

1. Record any wages earned but not yet paid as of December 31st.

2. Record the adjustment entry for the interest.

3. Record the appraisal record for the lease.

3.	Show how all liabilities arising from these items are reported on the 31 December balance sheet . (Do not round up intermediate calculations.)

EZ BORDUR COMPANY
Balance sheet (partial)
on December 31st

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Journal Entries for Transactions up to December 20 January 8 Purchase of Inventory Debit Inventory 26000 Credit Accounts Payable 26000 January 17 Paym... View the full answer