Required

1. Organize the transaction data in accounts under an accounting equation.
2. Prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for Year 2.

Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 5,280 17,350 $ 1,940 25,430 9,875 18,300 17,945 Transactions for Year 2 1. Acquired an additional $11,800 cash from the issue of common stock. 2. Purchased $60,700 of inventory on account. 3. Sold inventory that cost $62,900 for $94,000. Sales were made on account. 4. The company wrote off $1,450 of uncollectible accounts. 5. On September 1, LGS loaned $10,500 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. Paid $15,900 cash for operating expenses. 7. The company collected $83,760 cash from accounts receivable. 8. A cash payment of $52,250 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 2 (see item 5)