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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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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prepare journal entries , adjusting entries and adjusted trial balance with all work 

 

Prepare journal entries for the transactions listed above. (Include entries for cost of goods sold using the perpetual system) (Credit account ti amounts. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Notes Receivable Date Jan 10 Jan 3 Jan 8 Jan 11 Jan 15 03 Jan 17: Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable Inventory Accounts Payable Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold M Inventory (To record cost of goods sold) Cash Service Charge Expense Sales Revenue (To record sales and service charges) Cost of Goods Sold Inventory (To record cost of goods sold) Cash Accounts Receivable Debit 1200 700 16400 27900 20400 873 27 800 22800 Credit 1200 700 16400 27900 20400 900 800 22800 Jan 21 Jan 24 t Jan. 27 Jan 31 Accounts Payable Cash (2) Accounts Receivable Allowance for Doubtful Accounts (To reverse allowance for doubtful debts) Cash Accounts Receivable (To record cash received from Goza Company) Supplies Cash Other Operating Expenses Cash Date Jan 31 (1) Interest Receivable Account Titles and Explanation Interest Revenue Bad Debts Expense Allowance for Doubtful Accounts (3) Supplies Expense Supplies 13800 Debit 300 300 Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no for the amounts.) 1300 3400 300 800 Credit 13800 口 300 300 1300 3400 300 +
Transcribed Image Text:Prepare journal entries for the transactions listed above. (Include entries for cost of goods sold using the perpetual system) (Credit account ti amounts. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Notes Receivable Date Jan 10 Jan 3 Jan 8 Jan 11 Jan 15 03 Jan 17: Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable Inventory Accounts Payable Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold M Inventory (To record cost of goods sold) Cash Service Charge Expense Sales Revenue (To record sales and service charges) Cost of Goods Sold Inventory (To record cost of goods sold) Cash Accounts Receivable Debit 1200 700 16400 27900 20400 873 27 800 22800 Credit 1200 700 16400 27900 20400 900 800 22800 Jan 21 Jan 24 t Jan. 27 Jan 31 Accounts Payable Cash (2) Accounts Receivable Allowance for Doubtful Accounts (To reverse allowance for doubtful debts) Cash Accounts Receivable (To record cash received from Goza Company) Supplies Cash Other Operating Expenses Cash Date Jan 31 (1) Interest Receivable Account Titles and Explanation Interest Revenue Bad Debts Expense Allowance for Doubtful Accounts (3) Supplies Expense Supplies 13800 Debit 300 300 Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no for the amounts.) 1300 3400 300 800 Credit 13800 口 300 300 1300 3400 300 +
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.
Transcribed Image Text: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.
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