cutting one object with another using illustrator


I want to cut an object using second object how can I acheive it? enter image description here

In the above image you can see 2 objects one is circle having 2px stroke and no fill, second is rectangle having white fill but no stroke. I want to cut circle based on rectangle to make it something like this

enter image description here

Using your solutions I am getting object like this one

enter image description here

5/5/2014 8:11:00 AM

Its easy:

by using shape builder tool - (Shift+M)

step 1- make 2 shapes as shown in the imagecreated 2 shapes

step 2- keep both objects together and select both the both images

step 3- use the shape builder tool(Shift+M) and alt+click on the part of image you want to remove.alt click on image

step 4- the unwanted part of image will be removed....we can just play around with this tool....its really easy and image

hope it helps :)

5/5/2014 7:22:00 AM