Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals Debit Credit $ 9,000 41,089 $ 2,500 78,000 21,600 50,888 54,500 $128,000 $120,000 Transactions for Year 2 1. LGS acquired an additional $20,000 cash from the issue of common stock. 2 LGS purchased $85,000 of Inventory on account. 3. LGS sold Inventory that cost $91,000 for $160,000. Sales were made on account. 4. The company wrote off $900 of uncollectible accounts. 5. On September 1, LGS loaned $18,000 to Eden Co. The note had an 8 percent Interest rate and a one-year term. 6. LGS paid $19,000 cash for operating expenses. 7. The company collected $161.000 cash from accounts receivable. 8. A cash payment of $92,000 was paid on accounts payable. 9. The company pald a $5,000 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $7.000. The cost of goods sold was $4,000. The credit card company charges a 4% service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 1 percent of sales on account 12. Recorded the accrued Interest at December 31. Year 2 Exercise 7-15A Part c. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2 (Statement of changes in stockholders' equity, Balance Sheet and Statement of Cash Flows only: Items to be deducted must be Indicated with a minus sign.) LITTLE GROCERY SUPPLIER Income Statement For the Year Ended December 31. Year 2