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Bindy Crawford created a corporation providing legal services, Larkspur Inc, on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.

Bindy Crawford created a corporation providing legal services, Larkspur Inc, on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Bindy Crawford created a corporation providing legal services, Larkspur Inc., on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19. 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.
Transcribed Image Text:Bindy Crawford created a corporation providing legal services, Larkspur Inc., on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19. 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.
Prepare a tabular analysis of the August transactions beginning with July 31 balances. Include margin explanations for any changes in Retained Earnings. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Post entries in the order presented in the question.) July 31 Bal. $ Aug 1 9 15 19 23 26 31 Cash DO $ Accounts Receivable Assets Supplies
Transcribed Image Text:Prepare a tabular analysis of the August transactions beginning with July 31 balances. Include margin explanations for any changes in Retained Earnings. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Post entries in the order presented in the question.) July 31 Bal. $ Aug 1 9 15 19 23 26 31 Cash DO $ Accounts Receivable Assets Supplies
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