Comprehensive Problem 9 (Part Level Submission) Larkspur Company's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described following the trial balance. Debit Credit Cash $27,500 Accounts Receivable 35,500 Notes Receivable 9,900 Interest Receivable -0- Inventory 36,500 Prepaid Insurance 3,780 Land 20,700 Buildings 156,000 Equipment 69,000 Patents 10,200 Allowance for Doubtful Accounts $400 Accumulated Depreciation-Buildings 52,000 Accumulated Depreciation Equipment 27,600 Accounts Payable 27,300 Salaries and Wages Payable -0- Unearned Rent Revenue 4,200 Notes Payable (due in 2020) 13,000 Interest Payable -0- Notes Payable (due after 2020) 36,000 Common Stock 45,000 Retained Earnings 81,680 Dividends 12,500 Sales Revenue 902,000 Interest Revenue -0- Rent Revenue -0- Gain on Disposal of Plant Assets -0- Bad Debts Expense -0- Cost of Goods Sold 636,000 Depreciation Expense -0- Insurance Expense -0- Interest Expense -0- Other Operating Expenses 61,600 Amortization Expense -0 Salaries and Wages Expense 110,000 Total $1,189,180 $1,189,180 Unrecorded transactions: 1. On May 1, 2020, Larkspur purchased equipment for $16,000 plus sales taxes of $1,000 (all paid in cash). 2. On July 1, 2020, Larkspur sold for $3,500 equipment which originally cost $5,200. Accumulated depreciation on this equipment at January 1, 2020, was $2,000; 2020 depreciation prior to the sale of the equipment was $450. 3. On December 31, 2020, Larkspur sold on account $5,200 of inventory that cost $3,500. 4. Larkspur estimates that uncollectible accounts receivable at year-end is $4,100. 5. The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded. 6. The balance in prepaid insurance represents payment of a $3,780 6-month premium on September 1, 2020. 7. The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $30,000. 8. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 9. The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,600. 10. The patent was acquired on January 1, 2020, and has a useful life of 10 years from that date. 11. Unpaid salaries and wages at December 31, 2020, total $2,200. 12. The unearned rent revenue of $4,200 was received on December 1, 2020, for 3 months' rent. 13. Both the short-term and long-term notes payable are dated January 1, 2020, and carry a 9% interest rate. All interest is payable in the next 12 months. Prepare an updated December 31, 2020, trial balance. Larkspur, Inc. Trial Balance For the Month Ended December 31, 2020 For the Year Ended December 31, 2020 December 31, 2020 Debit Credit $ $ $ Total Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Comprehensive Problem 9 (Part Level Submission) Larkspur Company's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described following the trial balance. Debit Credit Cash $27,500 Accounts Receivable 35,500 Notes Receivable 9,900 Interest Receivable -0- Inventory 36,500 Prepaid Insurance 3,780 Land 20,700 Buildings 156,000 Equipment 69,000 Patents 10,200 Allowance for Doubtful Accounts $400 Accumulated Depreciation-Buildings 52,000 Accumulated Depreciation Equipment 27,600 Accounts Payable 27,300 Salaries and Wages Payable -0- Unearned Rent Revenue 4,200 Notes Payable (due in 2020) 13,000 Interest Payable -0- Notes Payable (due after 2020) 36,000 Common Stock 45,000 Retained Earnings 81,680 Dividends 12,500 Sales Revenue 902,000 Interest Revenue -0- Rent Revenue -0- Gain on Disposal of Plant Assets -0- Bad Debts Expense -0- Cost of Goods Sold 636,000 Depreciation Expense -0- Insurance Expense -0- Interest Expense -0- Other Operating Expenses 61,600 Amortization Expense -0 Salaries and Wages Expense 110,000 Total $1,189,180 $1,189,180 Unrecorded transactions: 1. On May 1, 2020, Larkspur purchased equipment for $16,000 plus sales taxes of $1,000 (all paid in cash). 2. On July 1, 2020, Larkspur sold for $3,500 equipment which originally cost $5,200. Accumulated depreciation on this equipment at January 1, 2020, was $2,000; 2020 depreciation prior to the sale of the equipment was $450. 3. On December 31, 2020, Larkspur sold on account $5,200 of inventory that cost $3,500. 4. Larkspur estimates that uncollectible accounts receivable at year-end is $4,100. 5. The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded. 6. The balance in prepaid insurance represents payment of a $3,780 6-month premium on September 1, 2020. 7. The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $30,000. 8. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 9. The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,600. 10. The patent was acquired on January 1, 2020, and has a useful life of 10 years from that date. 11. Unpaid salaries and wages at December 31, 2020, total $2,200. 12. The unearned rent revenue of $4,200 was received on December 1, 2020, for 3 months' rent. 13. Both the short-term and long-term notes payable are dated January 1, 2020, and carry a 9% interest rate. All interest is payable in the next 12 months. Prepare an updated December 31, 2020, trial balance. Larkspur, Inc. Trial Balance For the Month Ended December 31, 2020 For the Year Ended December 31, 2020 December 31, 2020 Debit Credit $ $ $ Total Attempts: 0 of 1 used