Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Larkspur, Corporation's balance sheet at December 31, 2021, is presented as follows. LARKSPUR, CORPORATION Balance Sheet December 31, 2021 Cash $22.400 $26,300 Accounts receivable 46,200

image text in transcribedimage text in transcribed

Larkspur, Corporation's balance sheet at December 31, 2021, is presented as follows. LARKSPUR, CORPORATION Balance Sheet December 31, 2021 Cash $22.400 $26,300 Accounts receivable 46,200 Accounts payable Common stock ($10 par) Retained earnings 75.000 Allowance for doubtful accounts (1.500) 129,300 Supplies 4.800 Land 39,300 Buildings 141.200 Accumulated depreciation-buildings (21,800 $230,600 $230,600 During 2022, the following transactions occurred. 1. 2. On January 1, 2022. Larkspur, issued 1.300 shares of $40 par. 7% preferred stock for $53,300. On January 1, 2022, Larkspur, also issued 900 shares of the $10 par value common stock for $21,900. Larkspur, performed services for $304,000 on account. On April 1, 2022, Larkspur collected fees of $32,800 in advance for services to be performed from April 1, 2022, to March 31, 2023. 3. 4. 5. 6. 7. 8. Larkspur collected $267,300 from customers on account. Larkspur, bought $35,400 of supplies on account. Larkspur, paid $30,300 on accounts payable. Larkspur, reacquired 300 shares of its common stock on June 1, 2022, for $28 per share. Paid other operating expenses of $187,900. On December 31, 2022, Larkspur,declared the annual preferred stock dividend and a $1.10 per share dividend on the outstanding common stock, all payable on January 15, 2023. An account receivable of $1,600 which originated in 2021 is written off as uncollectible. . 9. 10. 11. Adjustment data: 1. 2. 3. A count of supplies indicates that $5,800 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $3.900 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10.400. The income tax rate is 30%. (Hint: Prepare the income statement up to income before income taxes and multiply by 30% to compute the amount.) 4 a 5. . Prepare an adjusted trial balance December 31, 2022. LARKSPUIR, CORPORATION Adjusted Trial Balance Debit Credit Totals Textbook and Media List of Accounts Save for later Attempts: 0 of Sused Submit. Arever

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

Step: 3

blur-text-image

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

College Accounting Ch 1-12

Authors: Dansby

5th Edition

0763834955, 978-0763834951

More Books

Students also viewed these Accounting questions