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 . Transactions for Year 2 1. LGS acquired an additional $8,800 cash from the issue of common stock. 2. LGS purchased $58,500 of inventory on account. 3. LGS sold inventory that cost $60,300 for $94,900. Sales were made on account. 4. The company wrote off $1,490 of uncollectible accounts. 5. On September 1, LGS loaned $7,500 to Eden Company The note had an 5 percent interest rate and a one-year term. 6. LGS paid $14,460 cash for operating expenses. 7. The company collected $74,090 cash from accounts recelvablet 8. A cash payment of $45,280 was paid on accounts payable. 9. The company paid a $4,200 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,300. 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 2.5 percent of sales on account. 12. Recorded the accrued interest at December 31 , Year 2. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ LITTLE GROCERY SUPPLIER } \\ \hline \multicolumn{3}{|l|}{ Statement of Cash Flows } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 2} \\ \hline Cash Flows From Operating Activities: & z2 & \\ \hline Inflow from customers & 36,000 & \\ \hline Outflow for expenses & 16,932 & \\ \hline s. & & \\ \hline & & - \\ \hline Net Cash Flow from Operating Activities & & $52,932 \\ \hline Cash Flows From Investing Activities: & & \\ \hline Outflow for notes receivable & (7,500) & \\ \hline & at & \\ \hline Net Cash Flow from Investing Activities & & (7,500) \\ \hline Cash Flows From Financing Activities: & & \\ \hline Outflow for dividend & (4,200) & \\ \hline Inflow from stock issue & 8,800 & \\ \hline & 8 & \\ \hline Net Cash Flow from Financing Activities & = & 4,600 \\ \hline Net Change in Cash & & \\ \hline Plus: Beginning cash balance & & 6,510 \\ \hline Ending Cash Balance & & 6,510 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ LITTLE GROCERY SUPPLIER } \\ \hline \multicolumn{3}{|l|}{ Statement of Cash Flows } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 2} \\ \hline \multicolumn{3}{|l|}{ Cash Flows From Operating Activities: } \\ \hline Inflow from customers & 36,000 & \\ \hline Outflow for expenses & 16,932 & \\ \hline \multicolumn{3}{|l|}{ s. } \\ \hline & & \\ \hline Net Cash Flow from Operating Activities & & $52,932 \\ \hline Cash Flows From Investing Activities: & & \\ \hline \multirow[t]{2}{*}{ Outflow for notes receivable } & (7,500) & \\ \hline & 2. & \\ \hline Net Cash Flow from Investing Activities & & (7,500) \\ \hline Cash Flows From Financing Activities: & & \\ \hline Outflow for dividend & (4,200) & \\ \hline \multirow[t]{2}{*}{ Inflow from stock issue } & 8,800 & \\ \hline & 0. & \\ \hline Net Cash Flow from Financing Activities & & 4,600 \\ \hline \multicolumn{3}{|l|}{ Net Change in Cash } \\ \hline Plus: Beginning cash balance & & 6,510 \\ \hline Ending Cash Balance & & 6,510 \\ \hline \end{tabular} 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. Transactions for Year 2 1. LGS acquired an additional $8,800 cash from the issue of common stock. 2. LGS purchased $58,500 of inventory on account. 3. LGS sold inventory that cost $60,300 for $94,900. Sales were made on account. 4. The company wrote off $1,490 of uncollectible accounts. 5. On September 1, LGS loaned $7,500 to Eden Company The note had an 5 percent interest rate and a one-year term. 6. LGS paid $14,460 cash for operating expenses. 7. The company collected $74,090 cash from accounts receivablet 8. A cash payment of $45,280 was paid on accounts payable. 9. The company paid a $4,200 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,300. 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 2.5 percent of sales on account. 12. Recorded the accrued interest at December 31 , Year 2. Required information \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Cash } \\ \hline Beginning Balance & 6,510 & & \\ \hline 1. & 8,800 & 7,500 & 5. \\ \hline 7. & 74,090 & 14,460 & 6. \\ \hline & & 45,280 & 8. \\ \hline & & 4.200 & 9. \\ \hline= & & & \\ \hline Ending Balance & 17,960 & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Accounts Payable } \\ \hline Beginning Balance & & 7,590 & \\ \hline 8. & 45,280 & 58,500 & 2. \\ \hline 3 & & & \\ \hline , & & & \\ \hline & & & \\ \hline 7 & & & \\ \hline Ending Balance & & 20,810 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Accounts Receivable } \\ \hline Beginning Balance & 17,060 & & \\ \hline 3a. & 94,900 & 74,090 & 7. \\ \hline & & & \\ \hline & & & \\ \hline Ending Balance & 37,870 & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Beginning Balance & & 22,000 & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Allow. For Doubt. Acct. } \\ \hline Beginning Balance & & & \\ \hline 4. & 1,490 & 2,373 & 11 \\ \hline & & & \\ \hline & & 883 & \\ \hline \multicolumn{4}{|c|}{ Merchandise Inventory } \\ \hline Beginning Balance & 23,450 & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Common Stock } \\ \hline Beginning Balance & & 22,000 & \\ \hline & 4 & 8,800 & 1. \\ \hline & 9 & & \\ \hline Ending Balance & & 30,800 & \\ \hline \multicolumn{4}{|c|}{ Retained Earnings } \\ \hline Beginning Balance & & 15,170 & \\ \hline 9. & 4,200 & 19,193 & \\ \hline Ending Balance & & 30,163 & \\ \hline & & & \\ \hline \multicolumn{4}{|c|}{ Dividends } \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ LITTLE GROCERY SUPPLIER } \\ \hline \multicolumn{5}{|c|}{ Balance Sheet } \\ \hline \multicolumn{5}{|c|}{ As of December 31, Year 2} \\ \hline Assets & & & & \\ \hline Cash & 2 & + & $ & 17,960 \\ \hline Accounts receivable & ( $ & 37,870 & & \\ \hline Less: Allowance for doubtful accounts & Q & (2,373) & & 35,497 \\ \hline Accounts receivable - Credit cards & (2) & & & 3,2010 \\ \hline Notes receivable & 2 & - & & 7,500 \\ \hline Interest receivable & 2 & & & 1250 \\ \hline Merchandise inventory & 2 & & & 19,750 \\ \hline & & & & \\ \hline Total Assets & & A. & $ & 84,033 \\ \hline \multicolumn{5}{|l|}{ Liabilities } \\ \hline Accounts payable & ( ) & & $ & 20,810 \\ \hline & & & & \\ \hline Total Liabilities & & & & 20,810 \\ \hline Stockholders' Equity & & a1 & & \\ \hline Common stock & 0 & 30,800 & & \\ \hline Retained earnings & 2 & 30,163 & & \\ \hline & & & & +4 \\ \hline Total Stockholders' Equity & & & & 60,963 \\ \hline Total Liabilities and Stockholders' Equity & & & $ & 81,773 \\ \hline \end{tabular} Prepare an income statement for Year 2. (Round your answers to the nearest Complete this question by entering your answers In the tabs belo Prepare a statement of changes In stockholders' equity for Year 2. (Enter