1. 2 Larkspur, Inc. has the following information available for accruals for the year ended December 31, 2020. The company adjusts its accounts annually. The December utility bill for $375 was unrecorded on December 31. Larkspur paid the bill on January 11. Larkspur is open 7 days a week and employees are paid a total of $3,080 every Monday for a 7-day (Monday-Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on Jafuary 4. Larkspur signed a $39,600,5% bank loan on November 1, 2019, due in 2 years. Interest is payable on the first day of each following month Larkspur receives a fee from Pizza Shop next door for all pizzas sold to customers using Larkspur's facility. The amount owed for December is $260, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) Larkspur rented some of its unused warehouse space to a client for $5,280 a month, payable the first day of the following month. It received the rent for the month of December on January 2. 3. 4 5. Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense Depreciation on plant 60,000 Property taxes on plant Property taxes on store 7.500 Delivery expense Labor costs of assembly-line workers 110,000 Sales commissions Factory supplies used 13,000 Salaries paid to sales clerks $45,000 14,000 21.000 35,000 50.000