Larkspur Corporation Balance Sheet December 31,2024 Cash $27,000 Accounts payable $12,375 Inventory 27,675 Interest payable 2,250 Prepaid insurance 5,040 Bonds payable 45,000 Equipment 34,200 Commonstock 22,500 1. Larksur paid $2,250 interest on the bonds on Jamuary 1,2025 . 2. Larkspur purchased $216,990 of imventory on account. 3. Larksur sold for \$432,000 cash imentory which cost $237,600. Larkspur also callected $25,920 sales taoces. 4. Larkspur paid $207,000 on accounts payable. 5. Larkspir paid $2,250 interest on the bonds on July 1, 2025 6. The prepaid insurance ($5,040) expired on July 31 7. On August 1, Larkspur paid \$8,160 for insurance coverage from August 1, 2025, through July 31, 2026. 8. Larkspur paid $15,300 sales taxes to the state. 9. Paid other operating expenses, $81,900 10. Redeemed the bonds on December 31,2025 , by piying $43,200 plus $2,250 interest. 11. Issued $81,000 of 8%,10-year bonds on December 31,2025 , at 103 . The bonds pay interest every June 30 and Decemb 31 Adjustment data: 1. Recorded the insurance expired from item 7. 2. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years witha $2,700 salvage value. 3. The income taxrate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount) Mo. Mooount Thes and Expinntion 1. 2. 3. (To record sales revenve) (To racord cont of soods sold] 4. 5 6. 7. B. 10. (To record intersst eqpense) (To record retirement of bonds) 11. Adj. 1. Adj. 2. Adj. 3. Larkspur Corporation Balance Sheet December 31,2024 Cash $27,000 Accounts payable $12,375 Inventory 27,675 Interest payable 2,250 Prepaid insurance 5,040 Bonds payable 45,000 Equipment 34,200 Commonstock 22,500 1. Larksur paid $2,250 interest on the bonds on Jamuary 1,2025 . 2. Larkspur purchased $216,990 of imventory on account. 3. Larksur sold for \$432,000 cash imentory which cost $237,600. Larkspur also callected $25,920 sales taoces. 4. Larkspur paid $207,000 on accounts payable. 5. Larkspir paid $2,250 interest on the bonds on July 1, 2025 6. The prepaid insurance ($5,040) expired on July 31 7. On August 1, Larkspur paid \$8,160 for insurance coverage from August 1, 2025, through July 31, 2026. 8. Larkspur paid $15,300 sales taxes to the state. 9. Paid other operating expenses, $81,900 10. Redeemed the bonds on December 31,2025 , by piying $43,200 plus $2,250 interest. 11. Issued $81,000 of 8%,10-year bonds on December 31,2025 , at 103 . The bonds pay interest every June 30 and Decemb 31 Adjustment data: 1. Recorded the insurance expired from item 7. 2. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years witha $2,700 salvage value. 3. The income taxrate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount) Mo. Mooount Thes and Expinntion 1. 2. 3. (To record sales revenve) (To racord cont of soods sold] 4. 5 6. 7. B. 10. (To record intersst eqpense) (To record retirement of bonds) 11. Adj. 1. Adj. 2. Adj. 3
