Required information 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: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals Debit $ 9,000 Credit 41,000 $ 2,500 78,000 21,000 50,000 54,500 $128,000 $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. Sales 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 1 percent of sales on account. Exercise 7-15A Part c c. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2 (Statement of changes in stockholders' equity, Balance Sheet and Statement of Cash Flows only: Items to be deducted must be indicated with a minus sign.) LITTLE GROCERY SUPPLIER Income Statement For the Year Ended December 31, Year 2 Operating expenses Total operating expenses