Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1 : Transactions for Year

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1 : Transactions for Year 2 1. Acquired an additional $9,200 cash from the issue of common stock. 2. Purchased $59,000 of inventory on account. 3. Sold inventory that cost $62,800 for $96,300. Sales were made on account. 4. The company wrote off $1,230 of uncollectible accounts. 5. On September 1, LGS loaned $7,000 to Eden Co. The note had an 7 percent intertist rate and a one-year term. 6. Paid $14,180 cash for operating expenses. 7. The company collected $84,540 cash from accounts receivable. 8. A cash payment of $53,370 was paid on accounts payable. 9. The company paid a $4,800 cash dividend to the stockholders. 10. Uncollectible accounts are estimated to be 2 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 flo Year 2. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a statement of changes in stockholders' equity, Year 2. Complete this question by entering your answers in the tabs below. Prepare a statement of changes in stockholders' equity for Year 2. (Enter all final ansy outflows with a minus sign.) Prepare a balance sheet for Year 2. (Be sure to list the assets in the order of their liqu dollars.) L

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions