Question

Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Larkspur had the following account balances. The company uses the perpetual inventory method. Cash Accounts Receivable Supplies Equipment Debit $26,100 6,496 2,494 72,500 $107,590 Accumulated Depreciation Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Credit $2,900 9,860 11,600 4,930 58,000 20,300 $107,590 During November, the following summary transactions were completed. Nov. 8 10 11 12 15 19 20 22 25 27 28 29 29 29 29 Paid $10,295 for salaries due employees, of which $5,365 is for November and $4,930 is for October. Received $5,510 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $23,200, terms 2/10, n/30. Sold merchandise on account for $15,950, terms 2/10, n/30. The cost of the merchandise sold was $11,600. Received credit from Dimas Discount Supply for merchandise returned $870. Received collections in full, less discounts, from customers billed on sales of $15,950 on November 12. Paid Dimas Discount Supply in full, less discount. Received $6,670 cash for services performed in November. Purchased equipment on account $14,500. Purchased supplies on account $4,930. Paid creditors $8,700 of accounts payable due. Paid November rent $1,087. Paid salaries $3,770. Performed services on account and billed customers $2,030 for those services. Received $1,958 from customers for services to be performed in the future.

Answer 1

Cash
11/1 Bal.	26,100	11/8	$10,295
11/10	$5,510	11/20	$21,883
11/19	$15,631	11/28	$8,700
11/22	$6,670	11/29	$1,087
11/29	$1,958	11/29	$3,770
11/31 Bal.	$10,134
Accounts Receivable
11/1 Bal.	$6,496	11/10	$5,510
11/12	$15,950	11/19	$15,950
11/29	$2,030
11/31 Bal.	$3,016
Inventory
11/11	$23,200	11/12	$11,600
		11/15	$870
		11/20	$447
11/31 Bal.	$10,283
Supplies
11/1 Bal.	$2,494
11/27	$4,930
Equipment
11/1 Bal.	$72,500
11/25	$14,500
Accumulated Depreciation-equipment
		11/1 Bal.	$2,900
Accounts payable
11/15	$870	11/1 Bal.	$9,860
11/20	$22,330	11/11	$23,200
11/28	$8,700	11/25	$14,500
		11/27	$4,930
		11/31 Bal.	$20,590
Unearned Service revenue
		11/1 Bal.	$11,600
		11/29	$1,958
Salaries and wages payable
11/8	$4,930	11/1 Bal.	$4,930
Common stock
		11/1 Bal.	$58,000
		11/31 Bal.	$58,000
Retained earnings
		11/1 Bal.	$20,300
Service revenue
		11/22	$6,670
		11/29	$2,030
Salaries and wages expense
11/8	$5,365
11/29	$3,770
Rent expense
11/29	$1,087
Sales revenue
		11/12	$15,950
Cost of goods sold
11/12	$11,600
Sales discounts
11/19	$319

Calculations:

Date	Account title	Debit	Credit
11/8	Salaries and wages payable	$4,930
	Salaries and wages expense	$5,365
	Cash		$10,295
11/10	Cash	$5,510
	Accounts receivable		$5,510
11/11	Inventory	$23,200
	Accounts payable		$23,200
11/12	Accounts receivable	$15,950
	Sales revenue		$15,950
	Cost of goods sold	$11,600
	Inventory		$11,600
11/15	Accounts payable	$870
	Inventory		$870
11/19	Cash	$15,631
	Sales discount [15,950 x 0.02]	$319
	Accounts receivable		$15,950
11/20	Accounts payable [23,200-870]	$22,330
	Cash		$21,883
	Inventory [22,330 x 0.02]		$447
11/22	Cash	$6,670
	Service revenue		$6,670
11/25	Equipment	$14,500
	Accounts payable		$14,500
11/27	Supplies	$4,930
	Accounts payable		$4,930
11/28	Accounts payable	$8,700
	Cash		$8,700
11/29	Rent expense	$1,087
	Cash		$1,087
11/29	Salaries and wages expense	$3,770
	Cash		$3,770
11/29	Accounts receivable	$2,030
	Service revenue		$2,030
11/29	Cash	$1,958
	Unearned revenue		$1,958