8

The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1: Cash Accounts receivable allowance for doubtful accounts Inventory Accounts payable Common stock Retained earninga $ 6,280 19,675 $ 2,400 23,110 10,955 20,800 14,910 Transactions for Year 2 1. Acquired an additional $10,000 cash from the issue of common stock, 2. Purchased $61,100 of Inventory on account. 3. Sold Inventory that cost $61,300 for $97,000. Sales were made on account 4. The company wrote off $1,330 of uncollectible accounts. 5. On September 1, LGS loaned $9,000 to Eden Co. The note had an 7 percent interest rate and a one-year term. 6. Pald $15,740 cash for operating expenses. 7. The company collected $73,430 cash from accounts receivable. 8. A cash payment of $50,490 was paid on accounts payable. 9. The company paid a $4,700 cash dividend to the stockholders. 10. Uncollectible accounts are estimated to be 1 percent of sales on account. 11. Recorded the accrued interest at December 31, Year 2 (see item 5). Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 2 Reg A Reg B Inc Semt Reg Stmt of Changes Reg 8 Bal Sheet Red Stmt Cash Flows Organire the transaction data in accounts under an accounting equation. (Do not round intermediate calculations, Enter any decreases to account balances with a minus Titles for Retained Earnings, leave the cell blank. Not all cells will require antry, Round your final answers to the nearest whole dollar) LITTLE GROCERY SUPPLER (LGS) Accounting Equation for the Year 2 Assets Liabilities Stockholders' Equity event Cash NRV Accounts Notes Inventory Interest Accounts Common Retained Rocolvable Accounts Titles for Red Earnings Recevable Receivable Payable Earnings Stock 1 2 3 3b 4 5 . 7 . 10 11 Bu 0 Roy Inc Simt> Complete this question by entering your answers in the tabs below. Reg A Reg B Inc Req B Stmt of Req B Bal Reg B Stmt Stmt Changes Sheet Cash Flows Prepare an income statement for Year 2. (Enter all final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Income Statement For the Year Ended December 31, Year 2 Expenses 0 Total expenses Operating income 0 Complete this question by entering your answers in the tabs below. Req B Inc Stmt Reg A Reg B Stmt of Changes Reg B Bal Sheet Reg B Stmt Cash Flows Prepare a statement of changes in stockholders' equity for Year 2. (Enter all final answers in outflows with a minus sign.) LITTLE GROCERY SUPPLIER (LGS) Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity $ Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Reg B Stmt Cash Flows Prepare a balance sheet for Year 2. (Be sure to list the assets in the order of their liquidity. En dollars.) LITTLE GROCERY SUPPLIER (LGS) + Balance Sheet As of December 31, Year 2 Assets 0 Total assets Liabilities 0 Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ Req A Req B Inc Stmt Req B Stmt of Changes Reg B Bal Sheet Reg B Stmt Cash Flows Prepare a statement of cash flows for Year 2. (Enter cash outflows with a min LITTLE GROCERY SUPPLIER (LGS) Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities: $ 0 0 Net cash flow from investing activities Cash flows from financing activities 0 Net cash flows from financing activities Net change in cash 0 Ending cash balance 0