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Required information Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1,7-5, (The following information applies to the questions displayed below) The following post-closing list of accounts

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Required information Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1,7-5, (The following information applies to the questions displayed below) The following post-closing list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 6,790 17,800 2,030 22,270 9,955 21,700 13,175 Transactions for Year 3 1. Acquired an additional $9,200 cash from the issue of common stock 2. Purchased $59,700 of inventory on account. 3. Sold inventory that cost $61,800 for $93,500. Sales were made on account 4. The company wrote off $980 of uncollectible accounts. 5. On September 1, LGS loaned $9,000 to Eden Co. The note had an 6 percent interest rate and a one-year term. 6. Paid $14,240 cash for operating expenses. 7. The company collected $88,060 cash from accounts receivable. 8. A cash payment of $50,940 was paid on accounts payable. 9. The company paid a $5,700 cash dividend to the stockholders. 10. Uncollectible accounts are estimated to be 1 percent of sales on account. 11. Recorded the accrued interest at December 31, Year 3 (see item 5). Required a. Organize the transaction data in accounts under an accounting equation (Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA). Investing activity (IA), or financing activity (FA). Not all cells require input.) Assets LITTLE GROCERY SUPPLIER (LGS) Accounting Equation for Year 3 Liabilities Stockholders' Equity Notes Interest Accounts Common Retained Recelvable Receivable Payable Stock Earnings Event Canh NRV Accounts Receivable Merchandise Inventory Account Titles for Retained Earnings Bal 1 2 3a 3b. 4. 5. 6. 7 8 9 10 11 Bal ol. 0 0 0

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