Larkspor Company's balancesheet at December 31, 2021, is presented as follows: During danuary 2022, the following transactions occurred. Larkspur uses the perpetual inventory method. Jan. 1 Larkspur accepted a 4-month, 8\% note from Merando Company in payment of Merando's $1,200 account. 3. Larkspur wrote off as uncollectible the accounts of Inwood Corporation (\$400) and Goza Company (\$300). 8 Larkspur purchased $16.400 of inventory on account. 11 Larkspur sold for $27,900 on account inventory that cost $20,400. 15 Larkspur sold inventory that cost $800 to Mark Lauber for $900. Lauber charged this amount on his Visa First Bank card. The service fee charged Lankspur by First Bank is 3% 17 Larkspur collected 522.800 from customers on account. 21 Larksour poid $13,800 on accounts payable. 24 Larkspur recelved payment in full (\$300) from Goza Company on the account written off on January 3. 27 Larksour murchased supplies for $1,300cash. 31 Larkspur pald other operating expenses, 53,400 . Adjustment data: 1. Interest is recorded for the month on the note from dansary 1. 2. Bad debts are expected to be 6x of the Jansary 31, 2022, accounts receivable. 3. Acount of supplies on lanuary 31. 2022, reveas that 5500 remains unused. Prepare journal entries for the transactions ilsted above. (Include entries for cost of goods sold using the perpetual system) (Credit accoun amounts. If no entry is required, select "No Entry" for the occount tities and enter 0 for the amounts.) sin3 Aliowance for Douttul Recounts 700 Jan11 Accounts Recelvable (To record sales) Cost ot Goods Sole 20400 (To record cost of goods sold) Jan. 15 (To record sales and service charges) Cost of cooos soid (To record cost of goods solid) Jan.17 (To reverse allowance for doubtful debts) (To record eash received from Goza Company) Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manuo for the amounts.) Prepare an adjusted trial baiance at January 31, 2022. Prepare an income statement for the month ending January 31,2022. LARKSPUR COMPANY Income Statement For the Month Ending January 31, 2022 * Sales Revenue Gross.Profit Operating Expenses Service Charge Expense $ Other Operating Expenses Total Operating Expenses Other Revenues and Gains Net income / (Loss) Prepare a retained earnings statement for the month ending January 31, 2022. Prepare a classified balance sheet as of January 31, 2022. (List current assets in order of liquidity.) LARKSPUR COMPANY Balance Sheet January 31,2022 Assets Current Assets Cash 5 $ Total Current Assets Liabilities and Stockholders' Equity Current Liabilities $ Stockholders Equity $ Total Stockholder's' Equity Totaillabilities and Stockholders' Equity
