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Please help with the marked red. Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Larkspur had the following account balances. The
Please help with the marked red.
Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Larkspur had the following account balances. The company uses the perpetual inventory method. Cash Accounts Receivable Supplies Equipment Debit $16,200 Accumulated Depreciation Equipment 4,032 Accounts Payable 1,548 Unearned Service Revenue 45,000 Salaries and Wages Payable $66,780 Common Stock Retained Earnings Credit $1,800 6,120 7,200 3,060 36,000 12,600 $66,780 During November, the following summary transactions were completed. Nov. 8 Paid $6,390 for salaries due employees, of which $3,330 is for November and $3,060 is for October. 10 Received $3,420 cash from customers in payment of account. 11 Purchased merchandise on account from Dimas Discount Supply for $14,400, terms 2/10, n/30. 12 Sold merchandise on account for $9,900, terms 2/10, n/30. The cost of the merchandise sold was $7,200. 15 Received credit from Dimas Discount Supply for merchandise returned $540. 19 Received collections in full, less discounts, from customers billed on sales of $9,900 on November 12. 20 Paid Dimas Discount Supply in full, less discount. 22 Received $4,140 cash for services performed in November. 25 Purchased equipment on account $9,000. 27 Purchased supplies on account $3,060. 28 Paid creditors $5,400 of accounts payable due. 29 Paid November rent $675. 29 Paid salaries $2,340. 29 Performed services on account and billed customers $1,260 for those services. 29 Received $1,215 from customers for services to be performed in the future. Retained Earnings 11/1 Bal. . 12,600 11/30 5724 Service Revenue 11/22 4,140 11/29 1,260 Adj. 12645 | Adj. 7,245 Depreciation Expense Adj. 450 Adj. 450 Supplies Expense 1,728 Adj. Adj. 1728 Salaries and Wages Expense 11/8 3,3301 11/29 2,340 Adj. 900 Adj. 6570 Rent Expense 11/29 675 11/30 675 IME Sales Revenue 11/30 990011/12 9,900 Cost of Goods Sold 11/12 7,200 11/30 7200 Sales Discounts 11/19 19811/30 198 Income Summary 11/30 16821|11/30 22545 11/30 5724 3Step by Step Solution
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