The following post-closing list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2:

Cash	$ 6,300
Accounts receivable	18,525
Allowance for doubtful accounts	1,795
Inventory	25,080
Accounts payable	8,190
Common stock	21,000
Retained earnings	18,920

Transactions for Year 3

Acquired an additional $11,700 cash from the issue of common stock.

Purchased $58,500 of inventory on account.

Sold inventory that cost $61,400 for $94,200. Sales were made on account.

The company wrote off $1,080 of uncollectible accounts.

On September 1, LGS loaned $10,500 to Eden Company. The note had an 7 percent interest rate and a one-year term.

Paid $14,520 cash for operating expenses.

The company collected $88,750 cash from accounts receivable.

A cash payment of $52,700 was paid on accounts payable.

The company paid a $4,000 cash dividend to the stockholders.

Uncollectible accounts are estimated to be 2 percent of sales on account.

Recorded the accrued interest at December 31, Year 3 (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 3.