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The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year Cash $ 5,960 Accounts receivable
The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year Cash $ 5,960 Accounts receivable 17, 189 Allowance for doubtful accounts $ 1,960 Inventory 23,900 Accounts payable 10,530 Common stock 18,600 Retained earnings 15,950 Transactions for Year 2 1. Acquired an additional $11,400 cash from the issue of common stock. 2 Purchased $58,800 of inventory on account 3. Sold inventory that cost $61,400 for $95,200. Sales were made on account. 4. The company wrote off $960 of uncollectible accounts. 5. On September 1, LGS loaned $9,000 to Eden Co. The note had an 7 percent interest rate and a one-year term. 6. Paid $15.530 cash for operating expenses. 7. The company collected $75,030 cash from accounts receivable. 8. A cash payment of $52,080 was paid on accounts payable. 9. The company paid a $5,300 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).LITTLE GROCERY SUPPLIER (LGS) Statement of Cash Flows For the Year Ended December 31, Year 2 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 Net cash flows from financing activities Net change in cash Ending cash balance
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