The following trial balance was prepared for Lakeview Sales and Service on December 31, 2011, after the closing entries were posted.

Lakeview had the following transactions in 2012:
1. Purchased merchandise on account for \(\$ 270,000\).
2. Sold merchandise that cost \(\$ 215,000\) on account for \(\$ 350,000\).
3. Performed \(\$ 80,000\) of services for cash.
4. Sold merchandise for \(\$ 76,000\) to credit card customers. The merchandise cost \(\$ 47,500\). The credit card company charges a 5 percent fee.
5. Collected \(\$ 360,000\) cash from accounts receivable.
6. Paid \(\$ 274,000\) cash on accounts payable.
7. Paid \(\$ 126,000\) cash for selling and administrative expenses.
8. Collected cash for the full amount due from the credit card company (see item 4).
9. Loaned \(\$ 60,000\) to R. Shell. The note had an 8 percent interest rate and a one-year term to maturity.
10. Wrote off \(\$ 650\) of accounts as uncollectible.
11. Made the following adjusting entries:

(a) Recorded three months' interest on the note at December 31, 2012 (see item 9).

(b) Estimated uncollectible accounts expense to be .5 percent of sales on account.
Required
Prepare general journal entries for these transactions; post the entries to T-accounts; and prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for 2012.

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Account Title Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Accounts Payable Common Stock Retained Earnings Totals Debit Credit $ 87,100 18,760 $ 960 94,600 44,000 90,000 65,500 $200,460 $200,460