Question

Current Attempt in Progress On April 1, Larkspur, Inc. began operations. The following transactions were completed during the month. 1. Issued common stock for $29,300 cash. 2 Obtained a bank loan for $8.500 by issuing a note payable. 3. Paid $13,400 cash to buy equipment. 4 Paid $1,500 cash for April office rent. 5. Paid $1.750 for supplies 6. Purchased $730 of advertising in the Daily Herald, on account 7. Performed services for $22.000 cash of $2,440 was received from customers, and the balance of $19,560 was billed to customers on account. 8. Paid $490 cash dividend to stockholders 9. Paid the utility bill for the month, $2,440. 10. Paid Daily Herald the amount due in transaction (6). 11 Paid $50 of interest on the bank loan obtained in transaction (2) 12 Paid employees' salaries, $7.810, 13 Received $14,640 cash from customers billed in transaction (7). 14 Paid income tax $1,830.

Answer 1

NO Accounts & explanations Debit wreelit cash 29300 29300 common stock (being commenced business with cash) 8500 2 850o Cash Note payable (Being obtained Banic loan) 3 Equipment 13400 13400 cash C Being equipment purchased) c 1500 office rent expense cash (Being office rent pard) 15oo 1750 Supplies cash (Being paid for supplier) 1750 6 1730 Advertising expense Accounts payable 730 (Being Adversement expense trurdue)

2440 7 cash lasto Accounts receivable 22.000 service revenue (Being performeel Services) 8 Retained eesrnings 490 4.90 Cash (Being dividend paid) 2440 utolines expense 9 2640 cash ( Cuhlinel expensee for the month 10 730 Accounts payable Cash (Berry Advertisement expense pard) 1730 Interest expense So so cash (Being interest alue on notes payaste) 7810 12 salaries Cash CBeing employees Salorry pura) 17810 13 14640 cash Accounts receivaste (Being received from Accounts receivaste) 14640 14 1830 Income the expense Cash (Being income tax paid) 1830