Grocery Supplier (LGS) as of December 31, Year 1.

	Debit	Credit
Cash	$6,120
Accounts receivable	16,810
Allowance for doubtful accounts		$1,740
Inventory	22,630
Accounts payable		9,260
Common stock		20,000
Retained earnings		14,560
Totals	$45,560	$45,560

Transactions for Year 2

1. LGS acquired an additional $9,300 cash from the issue of common stock.
2. LGS purchased $59,500 of inventory on account.
3. LGS sold inventory that cost $60,500 for $93,300. Sales were made on account.
4. The company wrote off $1,490 of uncollectible accounts.
5. On September 1, LGS loaned $7,000 to Eden Company The note had an 6 percent interest rate and a one-year term.
6. LGS paid $14,240 cash for operating expenses.
7. The company collected $83,600 cash from accounts receivable.
8. A cash payment of $48,330 was paid on accounts payable.
9. The company paid a $5,400 cash dividend to the stockholders.
10. Accepted credit cards for sales amounting to $3,700. The cost of goods sold was $2,000. The credit card company charges a 3 percent service charge. The cash has not been received.
11. Uncollectible accounts are estimated to be 2 percent of sales on account.
12. Recorded the accrued interest at December 31, Year 2.

a. Record the given transactions in general journal form

b. Open T-accounts and record the beginning balances and the Year 2 transactions

c. Prepare an income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Year 2.