Question
Larkspur, Inc. has the following balances in selected accounts on December 31, 2019. Accounts Receivable Accumulated Depreciation-Equipment $0 0 Equipment 9,000 Interest Payable 0
Larkspur, Inc. has the following balances in selected accounts on December 31, 2019. Accounts Receivable Accumulated Depreciation-Equipment $0 0 Equipment 9,000 Interest Payable 0 Notes Payable 10,200 Prepaid Insurance 2,820 Salaries and Wages Payable 0 Supplies 2,100 Unearned Service Revenue 30,000 All the accounts have normal balances. The information below has been gathered at December 31, 2019. 1 Larkspur, Inc. borrowed $10,200 by signing a 12%, one-year note on September 1, 2019. 2. A count of supplies on December 31, 2019, indicates that supplies of $980 are on hand. 3. Depreciation on the equipment for 2019 is $2,000. 4. Larkspur, Inc. paid $2,820 for 12 months of insurance coverage on June 1, 2019. 5. On December 1, 2019, Larkspur, Inc. collected $30,000 for consulting services to be performed from December 1, 2019, through March 31, 2020. 6. Larkspur, Inc. performed consulting services for a client in December 2019. The client will be billed $4,300. 7. Larkspur, Inc. pays its employees total salaries of $9,500 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2019. Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) No. 1. 2. 3. 5. 7. Account Titles and Explanation Debit Credit
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