Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Larkspur Company's balance sheet at December 31, 2021, is presented as follows. During January 2022, the following transactions occurred. Larkspur uses the perpetual inventory method.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Larkspur Company's balance sheet at December 31, 2021, is presented as follows. During January 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. Larkspyyr 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 Larkspur by First Bank is 3%. 17 Larkspur collected $22,800 from customers on account. 21 Larkspur paid $13,800 on accounts payable. 24 Larkspur received payment in full ( $300 ) from Goza Company on the account written off on January 3. 27 Larkspur purchased supplies for $1,300 cash. 31 Larkspur paid other operating expenses, $3,400. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 6% of the January 31,2022 , accounts receivable. 3. A count of supplies on January 31,2022 , reveals that $500 remains unused. Preparejournal entries for the transactions listed above. (Include entries for cost of goods sold using the perpetual system.) (Credit account ti no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts.) lan3 Allewance for Doubtrul Alccounts Accourits Recenvable 3an8: liaventoris. (torecord sales) Cost ol Coods 5old (To record cost of goods sold) Jan. 15 (To record sales and service charges) Cont of Goods sold (To record cost of soods sold) sin17: Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manua amounts.) Dranara an arliueted trial halanre at lanuarv 21.2022 Prepare an income statement for the month ending January 31,2022. LARKSPUR COMPANY Income Statement sales $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Study Guide To 6r E

Authors: Joseph G. Louderback, Geraldine F. Dominiak

1st Edition

0534919618, 978-0534919610

More Books

Students also viewed these Accounting questions

Question

=+ Should the MNE belong (why, why not)?

Answered: 1 week ago

Question

=+ What is the role of government in bargaining?

Answered: 1 week ago