The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1: Cashi Accounts receivable. Allowance for doubtful accounts. Inventory Accounts payable Common stock Retained earnings $ 6,170 17,055 $ 1,990. 22, 750 9, 215 18, 400 16, 370 Transactions for Year 2 1. Acquired an additional $11,900 cash from the issue of common stock. 2. Purchased $60,400 of inventory on account. 3. Sold inventory that cost $60,700 for $95,700. Sales were made on account. 4. The company wrote off $1,380 of uncollectible accounts. 5. On September 1, LGS loaned $7,000 to Eden Co. The note had an 7 percent interest rate and a one-year term. 6. Paid $14,310 cash for operating expenses. 7. The company collected $89,400 cash from accounts receivable. 8. A cash payment of $53,760 was paid on accounts payable. 9. The company paid a $4,300 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). Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 2. Req A Event Bal. 1. 2. 3a. 3b. 4. 5. 6. 7. 8. 9. 10. 11. Bal. Req B Inc Stmt Organize the transaction data in accounts under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry. Round your final answers to the nearest whole dollar.) Cash |+| + + + |+| +1 +1 + Req B Stmt of Changes + 0 + NRV Accounts Receivable Req B Bal Sheet 0 + Assets + Inventory + + +1 + + + + + + Req B Stmt Cash Flows 0 + LITTLE GROCERY SUPPLIER (LGS) Accounting Equation for the Year 2 Notes Receivable + + + + + + + 0 + Interest Receivable = Liabilities + Stockholders' Equity Retained Earnings = = = = =[ = = 0] = Accounts Common Payable Stock + + + + + 0 + + + + + + + + 0 + 0 Accounts Titles for Retained Earnings So S Sh A Req B Stmt of Req B Bal Changes Sheet Prepare an income statement for Year 2. (Enter all final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Income Statement For the Year Ended December 31, Year 2 Req A Expenses Total expenses Operating income Req B Inc Stmt Req B Stmt Cash Flows < Req A 0 0 Req B Stmt of Changes > Req A Req B Inc Stmt Beginning common stock Req B Stmt of Changes Prepare a statement of changes in stockholders' equity for Year 2. (Enter all final answers in whole dollars. Enter cash outflows with a minus sign.) LITTLE GROCERY SUPPLIER (LGS) Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Ending common stock Beginning retained earnings Req B Bal Sheet Ending retained earnings. Total stockholders' equity $ $ Req B Stmt Cash Flows < Req B Inc Stmt 0 0 0 Req B Bal Sheet > Req A Assets Req B Inc Stmt Total assets Liabilities Req B Stmt of Changes Prepare a balance sheet for Year 2. (Be sure to list the assets in the order of their liquidity. Enter all final answers in whole dollars.) Total liabilities Stockholders' equity Req B Bal Sheet LITTLE GROCERY SUPPLIER (LGS) Balance Sheet As of December 31, Year 2 Total stockholders' equity Total liabilities and stockholders' equity Req B Stmt Cash Flows < Req B Stmt of Changes $ $ 0 0 0 0 Req B Stmt Cash Flows > Req B Inc Stmt Req B Stmt of Req B Bal Changes Sheet Prepare a statement of cash flows for Year 2. (Enter cash outflows with a minus sign. Enter all final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Req A 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 < Req B Bal Sheet Req B Stmt Cash Flows $ 0 0 0 0 0 Req B Stmt Cash Flows