On August 31, the balance sheet of Larkspur, Inc. showed Cash $10,000, Accounts Receivable $2,700, Supplies...

  

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On August 31, the balance sheet of Larkspur, Inc. showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $14,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2.350 cash for accounts payable due. 2. Collected $1,900 of accounts receivable. Purchased additional equipment for $1.750, paying $700 in cash and the balance on account. Recognized revenue of $8,800, of which $2.350 is collected in cash and the balance is due in October. Declared and paid a $2,400 cash dividend. Paid salaries $2.250, rent for September $1.050. and advertising expense $100. 3. 4. 5. 6. 7. Incurred utilities expense for month on account $320. Received $10,000 from Capital Bank on a 6-month note payable. 8. Prepare an income statement for September. Larkspur, Inc. Income Statement %24 On August 31, the balance sheet of Larkspur, Inc. showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $14,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2.350 cash for accounts payable due. 2. Collected $1,900 of accounts receivable. Purchased additional equipment for $1.750, paying $700 in cash and the balance on account. Recognized revenue of $8,800, of which $2.350 is collected in cash and the balance is due in October. Declared and paid a $2,400 cash dividend. Paid salaries $2.250, rent for September $1.050. and advertising expense $100. 3. 4. 5. 6. 7. Incurred utilities expense for month on account $320. Received $10,000 from Capital Bank on a 6-month note payable. 8. Prepare an income statement for September. Larkspur, Inc. Income Statement %24

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