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The following post-closing trial balance was drawn from the accounts of Spruce Timber Co. as of December 31, 2012. Debit Credit Cash $6,000 Accounts receivable

The following post-closing trial balance was drawn from the accounts of Spruce Timber Co. as of December 31, 2012.

Debit Credit

Cash $6,000

Accounts receivable 18,000

Allowance for doubtful accounts $2,000

Inventory 24,000

Accounts Payable 9,200

Common stock 20,000

Retained earnings 16,800

Totals $48,000 $48,000

Transactions for 2013

1. Acquired an additional $10,000 cash from the issue of common stock

2. Purchased $60,000 of inventory on account

3. Sold inventory that cost $62,000 for $95,000. Sales were made on account

4. Wrote off $1,100 of uncollectible accounts

5. On September 1, Spruce loaned $9,000 to Pine Co. The note had a 7% interest rate and a one year term.

6. Paid $15, 800 cash for salaries expense

7. Collected $80,000 cash from accounts receivable

8. Paid $52,000 cash on accounts payable

9. Paid a $5,000 cash dividend to teh stockholders

10. Estimated uncollectible accounts expense to be 1% of sales on account

11. Recorded teh accrued interest at December 31, 2013

a. Organize the transaction data in accounts under on accounting equation

b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for 2013

what is the answer for 'a' and 'b'?

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