Question
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
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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