Required information [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 Transactions for Year 3 $ 6,710 17,075 1,660 25,220 7,700 18,800 20,845 1. Acquired an additional $11,500 cash from the issue of common stock. 2. Purchased $58,500 of inventory on account. 3. Sold inventory that cost $61,900 for $93,200. Sales were made on account. 4. The company wrote off $950 of uncollectible accounts.. 5. On September 1, LGS loaned $8,000 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. Paid $16,360 cash for operating expenses. 7. The company collected $85,220 cash from accounts receivable. 8. A cash payment of $51,920 was paid on accounts payable. 9. The company paid a $6,000 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). 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.) LITTLE GROCERY SUPPLIER (LGS). Accounting Equation for Year 3 Event Cash NRV Accounts Receivable Assets Merchandise Inventory Liabilities Stockholders' Equity Notes Receivable Interest Receivable Accounts Payable Stock Common Retained Account Titles for Retained Earnings Earnings Bal. 6,710 17,075 + 25,220+ 7,700+ 18,800+ 20,845 1. 11,500+ + 11,500+ 2. + 58,500+ 58,500+ . 3a. + 93,200+ 93,200 Sales revenue 3b. (61,900) (61,900) Cost of goods sold 4. + (950)+ 950 => 5. (8,000)+ 8,000+ = 6. (16,360)+ = 7. 85,220+ (85,220) . (16,360) Operating expenses + 8. (51,920)+ (51,920) 9. (6,000)+ + (6,000) Dividend 10. . . Uncollectible accounts expense 11. Interest revenue Bal 21,150+ 24,105+ (2,450) 33,220 14,280 + 30,300+ 29,785 Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Stmt SE Req B Bal Sheet Req B Stmt Cash Flows Prepare an income statement for Year 3. (Enter all final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Income Statement For the Year Ended December 31, Year 3 Expenses Total expenses Operating income 0 Req B Inc Stmt Req B Stmt SE > Assets Total assets Liabilities LITTLE GROCERY SUPPLIER (LGS) Balance Sheet As of December 31, Year 3 Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity sign. Enter your final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: S + 0 0 Net cash flows from financing activities Net change in cash 0 0 Ending cash balance $ 0 Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Stm SE Req B Bal Sheet Req B Stmt Cash Flows Prepare a statement of changes in stockholders' equity for Year 3. (Enter all final answers in whole dolla with a minus sign.) LITTLE GROCERY SUPPLIER (LGS) Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 3 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings S 0 0 $ 0 Total stockholders' equity