Larkspur Company's balance sheet at December 31, 2021, is presented as follows. LARKSPUR COMPANY Balance Sheet December 31, 2021 Cash Accounts receivable Allowance for doubtful accounts Inventory Jan. 1 3 8 11 During January 2022, the following transactions occurred. Larkspur uses the perpetual Inventory method. 15 17 21 Accounts payable Common stock (800) Retained earnings 8,700 $41.100 $13,000 20,200 Larkspur sold for $27,900 on account inventory that cost $20,400. Larkspur sold inventory that cost $800 to Mark Lauber for $900. Lauber charged this amount on his Visa First Bank card. The service fee charged Larkspur by First Bank is 3% Larkspur collected $22,800 from customers on account. Larkspur paid $13,800 on accounts payable. 24 Larkspur received payment in full ($300) from Goza Company on the account written off on January 3 27 Larkspur purchased supplies for $1,300 cash 31 Larkspur paid other operating expenses, $3,400, Adjustment data: 1 2 3 $9,400 21,000 10,700 $41,100 Larkspur accepted a 4-month, 8% note from Merando Compa in payment of Merando's $1,200 account. Larkspur wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($300) Larkspur purchased $16,400 of inventory on account. Interest is recorded for the month on the note from January 1 Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of supplies on January 31, 2022, reveals that $500 remains unused.
Larkspur Company's balance sheet at December 31, 2021, is presented as follows. LARKSPUR COMPANY Balance Sheet December 31, 2021 Cash Accounts receivable Allowance for doubtful accounts Inventory Jan. 1 3 8 11 During January 2022, the following transactions occurred. Larkspur uses the perpetual Inventory method. 15 17 21 Accounts payable Common stock (800) Retained earnings 8,700 $41.100 $13,000 20,200 Larkspur sold for $27,900 on account inventory that cost $20,400. Larkspur sold inventory that cost $800 to Mark Lauber for $900. Lauber charged this amount on his Visa First Bank card. The service fee charged Larkspur by First Bank is 3% Larkspur collected $22,800 from customers on account. Larkspur paid $13,800 on accounts payable. 24 Larkspur received payment in full ($300) from Goza Company on the account written off on January 3 27 Larkspur purchased supplies for $1,300 cash 31 Larkspur paid other operating expenses, $3,400, Adjustment data: 1 2 3 $9,400 21,000 10,700 $41,100 Larkspur accepted a 4-month, 8% note from Merando Compa in payment of Merando's $1,200 account. Larkspur wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($300) Larkspur purchased $16,400 of inventory on account. Interest is recorded for the month on the note from January 1 Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of supplies on January 31, 2022, reveals that $500 remains unused.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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