Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5, 7-6 [The following information applies to the questions displayed below.] The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1. Debit Credit Cash Accounts receivable. $5,090 16,235 Allowance for doubtful accounts $2,230 Inventory 251990 Accounts payable 9,675 Common stock 22,000 Retained earnings 13,410 Totals $47,315 $47,315 Transactions for Year 2 1. LGS acquired an additional $11,900 cash from the issue of common stock. 2. LGS purchased $61,700 of inventory on account. 3. LGS sold inventory that cost $60,200 for $93,500. Sales were made on account. 4. The company wrote off $1,100 of uncollectible accounts. 5. On September 1, LGS loaned $8,000 to Eden Company The note had an 8 percent interest rate and a one-year term. 6. LGS paid $14,270 cash for operating expenses. 7. The company collected $74,860 cash from accounts receivable. 8. A cash payment of $45,190 was paid on accounts payable. 9. The company paid a $4,300 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,200. The cost of goods sold was $1,900. The credit card company charges a 3 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 3.5 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2. Exercise 7-15A (Algo) Part c c. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 Req C4 Prepare an income statement for Year 2. (Round your answers to the nearest whole dollar amounts.) LITTLE GROCERY SUPPLIER Income Statement For the Year Ended December 31, Year 2 Operating expenses Total operating expenses 0 0 8: 9 www