This is a multi-step question which needs the Journal Entries, Adjusting Entries, Income Statement, Retained Earnings Statement, Balance Sheet, and Adjusted Trial Balance.

Comprehensive Accounting Cycle Review 7 a-f, g1-g2 (Part Level Submission) On December 1, 2020, Larkspur, Inc. had the following account balances. Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Debit $17,100 Accumulated Depreciation Equipment 2,300 Accounts Payable 7,900 Common Stock 15,800 Retained Earnings 1,500 27,500 $ 72,100 Credit $3,000 6,200 52,300 10,600 $72,100 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30. 17 Sold merchandise on account $16,400, terms 2/10, n/30. The cost of the merchandise sold was $9,000. 19 Paid salaries $2,300. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,800 cash from customers in payment of account (no discount allowed). Adjustment data: 1. Depreciation $210 per month. 2. Insurance expired $390