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. . (c2) Prepare a retained earnings statement for the year ending December 31, 2022. (List items that increase retained earnings first.) LARKSPUR, CORPORATION Statement of Retained Earnings Revenues $ Less