Bindy Crawford created a corporation providing legal services, Larkspur Inc., on July $1,2025.$ On July $31$ the balance sheet showed Cash $$5,200,$ Accounts Receivable $$3,850,$ Supplies $$840,$ Equipment $$6,350,$ Accounts Payable $$5,550,$ Common Stock $$8,750,$ and Retained Earnings $$1,940.$ During August, the following transactions occurred.

Aug. $1$

Collected $$1,030$ of accounts receivable due from customers.

$4$

Paid $$2,780$ cash for accounts payable due.

$9$

Performed services worth $$5,610,$ of which $$3,540$ is collected in cash and the balance is due in September.

$15$

Purchased additional office equipment for $$4,350,$ paying $$440$ in cash and the balance on account.

$19$

Paid salaries $$1,350,$ rent for August $$650,$ and advertising expenses $$300.$

$23$

Paid a cash dividend of $$700.$

$26$

Borrowed $$5,200$ from American Federal Bank; the money was borrowed on a $4-$month note payable.

$31$

Incurred utility expenses for the month on account $$420.$

$($a$)$

Your Answer

Correct Answer $($Used$)$

Prepare a tabular analysis of the August transactions beginning with July $31$ balances. Include margin explanations for any changes in Retained Earnings. $($If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Post entries in the order presented in the question.$)$

LARKSPUR INC.

Assets

$=$

Liabilities

$+$

Stockholders$$ Equity

Cash

$+$

Accounts Receivable

$+$

Supplies

$+$

Equipment

$=$

Notes Payable

$+$

Accounts Payable

$+$

Common Stock

$+$

Retained Earnings

$+$

Revenues

$$

Expenses

$$

Dividends

July $31$ Bal.

$enter a dollar amount

$5,200$

$enter a dollar amount

$3,850$

$enter a dollar amount

$840$

$enter a dollar amount

$6,350$

$enter a dollar amount

$enter a dollar amount

$5,550$

$enter a dollar amount

$8,750$

$enter a dollar amount

$1,940$

$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

select an option

Aug. $1$

enter a dollar amount

$1,030$

enter a dollar amount

$-1,030$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option

$4$

enter a dollar amount

$-2,780$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$-2,780$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option

$9$

enter a dollar amount

$3,540$

enter a dollar amount

$2,070$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$5,610$

enter a dollar amount

enter a dollar amount

select an option

Service Revenue

$15$

enter a dollar amount

$-440$

enter a dollar amount

enter a dollar amount

enter a dollar amount

$4,350$

enter a dollar amount

enter a dollar amount

$3,910$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option

$19$

enter a dollar amount

$-1,350$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$-1,350$

enter a dollar amount

select an option

Salaries and Wages Expense

enter a dollar amount

$-650$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$-650$

enter a dollar amount

select an option

Rent Expense

enter a dollar amount

$-300$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$-300$

enter a dollar amount

select an option

Advertising Expense

$23$

enter a dollar amount

$-700$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$-700$

select an option

Dividends

$26$

enter a dollar amount

$5,200$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$5,200$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option

$31$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$420$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$-420$

enter a dollar amount

select an option

Utilities Expense

$enter a total amount

$8,750$

$+$

$enter a total amount

$4,890$

$+$

$ent