Larson's Accounting Company has the following account balances: Cash, $5,000; Accounts Receivable, $2,000; Prepaid Rent $1,500; Supplies,
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Question:
Larson's Accounting Company has the following account balances: Cash, $5,000; Accounts Receivable, $2,000; Prepaid Rent $1,500; Supplies, $850; Equipment, $6,000; Trucks, $15,000; Accounts Payable, $2,500; Common Stock, $20,000; Retained Earnings $7,850. Business transactions during December are presented as follows:
- Company received cash from clients for services, $4,500
- Larson paid to creditors $500,
- Paid office rent for the month of December, $750,
- Company billed client for accounting services on account, $5,200
- Supplies were purchased on account, $650,
- Company received cash from clients billed previously, $6,000
- Larson received an invoice for office equipment repair services from Office Extra for December (the invoice will be paid next month), $850,
- Larson paid monthly salaries, $2,700,
- Utilities expense were paid, $280,
- Miscellaneous expense were paid, $350,
- Dividends were paid, $550.
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