Exercise 7-15A 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: Credit Debit $ 9,000 41,000 $ 2,500 78,000 Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totala 21,000 50,000 54,500 $120.000 $128.000 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. Soles 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 paid 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 percent of sales on account 12. Recorded the accrued interest at December 31, Year 2 BaLCLCHEI UI LIIGITUS BLULRIVILEI CULV. DOIGILE JUICEL IU SLLER I Laan ruw URV. FLEIRS Required information LITTLE GROCERY SUPPLIER Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold (Gross profit Operating expenses Operating expenses $ 19,000 Uncollectible accounts expense Credit card expense 280 167,000 95,000 72,000 Total operating expenses Operating Income Interest revenue 19.280 52,720 480 53.200 $ LITTLE GROCERY SUPPLIER Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Required information LITTLE GROCERY SUPPLIER Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 0 Total stockholders' equity 0 0 $ ces LITTLE GROCERY SUPPLIER Balance Sheet As of December 31, Year 2 Assets Prey Next 0 Required Information 0 Total Assets Liabilities 0 Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0 ences LITTLE GROCERY SUPPLIER 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 invattina Artiviin 5 0 0 Required information LITTLE GROCERY SUPPLIER Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows From Operating Activities: 0 Net Cash Flow from Operating Activities Cash Flows From Investing Activities: Net Cash Flow from Investing Activities Cash Flows From Financing Activities: ances 0 Net Cash Flow from Financing Activities Net Change in Cash Ending Cash Balance $ 0