The Larkspur, Inc. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal. Unadjusted Adjusted Unadjusted AdjustedAccounts Payable $25,700 $25,700 Inventory $29,000 $29,000Accounts Receivable 30,700 30,700 Notes payable 37,000 37,000Accumulated Depr.—Equipment 36,500 45,500 Prepaid Insurance 10,000 2,500Cash 27,000 27,000 Property Tax Expense 2,500Common Stock 28,500 28,500 Property Taxes Payable 2,500Cost of Goods Sold 512,000 512,000 Rent Expense 18,000 18,000Dividends 10,500 10,500 Retained Earnings 61,700 61,700Freight-Out 5,000 5,000 Salaries and Wages Expense 93,100 93,100Equipment 145,500 145,500 Sales Commissions Expense 6,500 11,000Depreciation Expense 9,000 Sales Commissions Payable 4,500Insurance Expense 7,500 Sales Returns and Allowances 7,100 7,100Interest Expense 6,500 6,500 Sales Revenue 710,000 710,000Interest Revenue 9,500 9,500 Utilities Expense 8,000 8,000 Journalize the closing entries that are necessary

The closing entries are prepared to close the temporary accounts of the business.

Answered: The Larkspur, Inc. is located in…

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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The Larkspur, Inc. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal.

	Unadjusted	Adjusted		Unadjusted	Adjusted
Accounts Payable	$25,700	$25,700	Inventory	$29,000	$29,000
Accounts Receivable	30,700	30,700	Notes payable	37,000	37,000
Accumulated Depr.—Equipment	36,500	45,500	Prepaid Insurance	10,000	2,500
Cash	27,000	27,000	Property Tax Expense		2,500
Common Stock	28,500	28,500	Property Taxes Payable		2,500
Cost of Goods Sold	512,000	512,000	Rent Expense	18,000	18,000
Dividends	10,500	10,500	Retained Earnings	61,700	61,700
Freight-Out	5,000	5,000	Salaries and Wages Expense	93,100	93,100
Equipment	145,500	145,500	Sales Commissions Expense	6,500	11,000
Depreciation Expense		9,000	Sales Commissions Payable		4,500
Insurance Expense		7,500	Sales Returns and Allowances	7,100	7,100
Interest Expense	6,500	6,500	Sales Revenue	710,000	710,000
Interest Revenue	9,500	9,500	Utilities Expense	8,000	8,000