Comprehensive Accounting Cycle Review 7 a-f, g1-g2 (Part Level Submission) On December 1, 2020, Larkspur, Inc. had the following account balances. Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Debit $17,100 Accumulated Depreciation Equipment 2,300 Accounts Payable 7,900 Common Stock 15,800 Retained Earnings 1,500 27,500 $ 72,100 Credit $3,000 6,200 52,300 10,600 $72,100 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30. 17 Sold merchandise on account $16,400, terms 2/10, n/30. The cost of the merchandise sold was $9,000. 19 Paid salaries $2,300. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,800 cash from customers in payment of account (no discount allowed). Adjustment data: 1. Depreciation $210 per month. 2. Insurance expired $390. (b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. Cash Notes Receivable Accounts Receivable Inventory Inventory Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Common Stock Retained Earnings Sales Revenue Sales Discounts Accumulated Depreciation Equipment Accounts Payable Common Stock Retained Earnings Sales Revenue Sales Discounts Cost of Goods Sold Salaries and Wages Expense