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The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31. Year 1 Credit Debit $ 9,000

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The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31. Year 1 Credit Debit $ 9,000 41,000 78,000 Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals $ 2,500 21,000 50,000 54,500 $ 128,000 $ 128,000 Transactions for Year 2 1. LGS acquired an additional $20,000 cash from the issue of common stock 2. LGS purchased $85,000 of inventory on account. 3. LGS 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 Company The note had an 8 percent interest rate and a one-year term. 6. LGS 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. Accepted credit cards for sales amounting to $7,000. The cost of goods sold was $4,000. The credit card company charges a 4 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 1 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2 (see item 5). b. Open T-accounts and record the beginning balances and the Year 2 transactions. Answer is not complete Accounts Payable Cash 9,000 20,000 161.000 Beginning Balance 1. 7 Beginning Balance 19.000 92,000B 5,0009 Ending Balance 74,000 Ending Balance Common Stock Beginning Balance Beginning Balance 30 Accounts Receivable 41,000 800 X 160,000 18.000 7.000 161,000 5 7 100 Ending Balance 28.100 Ending Balance Allow. For Doubt. Acet. Retained Earnings Beginning Balance Beginning Balance 2,500 1,670 11 900 Ending Balance 3,270 Ending Balance

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