Posted: November 30th, 2022
Purchased merchandise on account at a cost of $14,000. (Assume a perpetual inventory system.)
Received $40,000 from National Bank after signing a 12-month, 6 percent, promissory note.
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.)
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.)
Determined that wages of $6,500 were earned but not yet paid on December 31 (ignore payroll taxes).
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