Problem 3-9 (Part Level Submission) The unadjusted trial balance of Larkspur, Inc. at December 31, 2017, is as follows: | Debit | Credit | Cash | $17,340 | | Accounts Receivable | 108,500 | | Allowance for Doubtful Accounts | | $3,680 | Inventory | 59,400 | | Prepaid Insurance | 4,546 | | Bond Investment at Amortized Cost | 46,800 | | Land | 29,000 | | Buildings | 157,200 | | Accumulated DepreciationBuildings | | 6,390 | Equipment | 33,120 | | Accumulated DepreciationEquipment | | 5,520 | Goodwill | 16,400 | | Accounts Payable | | 101,100 | Bonds Payable (20-year, 7%) | | 162,000 | Common Shares | | 115,900 | Retained Earnings | | 81,916 | Sales Revenue | | 182,000 | Rent Revenue | | 10,800 | Advertising Expense | 23,100 | | Supplies Expense | 10,000 | | Purchases | 97,500 | | Purchase Discounts | | 850 | Salaries and wages expense | 54,700 | | Interest Expense | 12,550 | | | $670,156 | $670,156 | Additional information: 1. | Actual advertising costs amounted to $1,540 per month. The company has already paid for advertisements inMontezuma Magazinefor the first quarter of 2018. | 2. | The building was purchased and occupied on January 1, 2015, with an estimated useful life of 20 years, and residual value of $29,400. (The company uses straight-line depreciation.) | 3. | Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,586, one-year term, taken out on April 1, 2017; and Policy B, cost of $1,960, three-year term, taken out on September 1, 2017. | 4. | A portion of Larkspurs building has been converted into a snack bar that has been rented to the Blue Spruce Corp. since July 1, 2016, at a rate of $7,200 per year payable each July 1. | 5. | One of the companys customers declared bankruptcy on December 30, 2017. It is now certain that the $2,680 the customer owes will never be collected. This fact has not been recorded. In addition, Larkspur estimates that 3% of the Accounts Receivable balance on December 31, 2017, will become uncollectible. | 6. | An advance of $520 to a salesperson on December 31, 2017, was charged to Salaries and Wages Expense. | 7. | On November 1, 2015, Larkspur issued 162 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31. | 8. | The equipment was purchased on January 1, 2015, with an estimated useful life of 12 years, and no residual value. (The company uses straight-line depreciation.) | 9. | On August 1, 2017, Larkspur purchased at par value 40 $1,170, 7% bonds maturing on July 31, 2019. Interest is paid on July 31 and January 31. | 10. | The inventory on hand at December 31, 2017, was $88,100 after a physical inventory count. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.) | | | | |