EZ Curb Company completed the following transactions during 2010. The annual accounting period ends December 31, 2010.Purchased merchandise on account at a cost of $14,000. 17 Paid for the January 8 purchase.
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.
Rented out a small office in a building owned by EZ Curb Company and collected six months' rent in advance amounting to $6,000.Received a $100 deposit from a customer as a guarantee to return a large trailer %u201Cborrowed%u201D for 30 days.
Determined that wages of $6,500 were earned but not yet paid on December 31.Dec. 31 Adjusted the accounts at year-end, relating to interest.Dec. 31 Adjusted the accounts at year-end, relating to rent.
Prepare journal entries for each of the transactions.
Prepare any adjusting entries required on December 31, 2010.
Show how all of the liabilities arising from these items are reported on the balance sheet at December 31, 2010.