The following post-closing list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 9,000 41,000 2,500 78,000 21,000 50,000 54,500 Transactions for Year 3 1. Acquired an additional $20,000 cash from the issue of common stock 2. Purchased $85,000 of inventory on account 3. Sold inventory that cost $91,000 for $160,000. Sales were made on account 4. The company wrote off $900 of uncollectible accounts. 5. On September 1, LGS loaned $18,000 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. Paid $19,000 cash for operating expenses. 7. The company collected $161,000 cash from accounts receivable. 8. A cash payment of $92,000 was paid on accounts payable. 9. The company paid a $5,000 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 3 (see item 5). Required a. Organize the transaction data in accounts under an accounting equation (Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (O investing activity (IA), or financing activity (FA). Not all cells require input.) LITTLE GROCERY SUPPLIER (LGS) Accounting Equation for Year 3 Liabilities Interest Accounts Receivable Payable Event Cash Assets Merchandise Inventory NRV Accounts Receivablo Notes Receivable Stockholders' Equity Common Retaing Stock Warning Bal + + + 1. 2 3a 3b. 5 6. 7 8 9. er an accounting equation (Enter any decreases to account balances and cash Statement of Cash Flows, indicate whether the item is an operating activity (OA), Not all cells require input.) sets Chandise wentory LITTLE GROCERY SUPPLIER (LGS) Accounting Equation for Year 3 Liabilities Notes Interest Accounts Recolvablo Recolvable Payable Stockholders' Equity Common Retained Stock Earnings Account Titles for Retained Earnings + + + + 4 +