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Comprehensive Accounting Cycle Review 5-2 (Part Level Submission) On November 1, 2017, Larkspur, Inc. had the following account balances. The company uses the perpetual inventory

Comprehensive Accounting Cycle Review 5-2 (Part Level Submission)

On November 1, 2017, Larkspur, Inc. had the following account balances. The company uses the perpetual inventory method.

DebitCreditCash$10,980Accumulated DepreciationEquipment$1,220Accounts Receivable2,733Accounts Payable4,148Supplies1,049Unearned Service Revenue4,880Equipment30,500Salaries and Wages Payable2,074$45,262Common Stock24,400Retained Earnings8,540$45,262

During November, the following summary transactions were completed.

Nov.8Paid $4,331 for salaries due employees, of which $2,257 is for November and $2,074 is for October.10Received $2,318 cash from customers in payment of account.11Purchased merchandise on account from Dimas Discount Supply for $9,760, terms 2/10, n/30.12Sold merchandise on account for $6,710, terms 2/10, n/30. The cost of the merchandise sold was $4,880.15Received credit from Dimas Discount Supply for merchandise returned $366.19Received collections in full, less discounts, from customers billed on sales of $6,710 on November 12.20Paid Dimas Discount Supply in full, less discount.22Received $2,806 cash for services performed in November.25Purchased equipment on account $6,100.27Purchased supplies on account $2,074.28Paid creditors $3,660 of accounts payable due.29Paid November rent $458.29Paid salaries $1,586.29Performed services on account and billed customers $854 for those services.29Received $824 from customers for services to be performed in the future.

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