The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, 2017: Transactions for 2018 Acquired an additional $11,300 cash from the issue of common stock. Purchased $61,300 of inventory on account. Sold inventory that cost $61,900 for $95,300. Sales were made on account. The company wrote off $1,270 of uncollectible accounts. On September 1, LGS loaned $7,500 to Eden Co. The note had an 8 percent interest rate and a one-year term. Paid $14,840 cash for operating expenses. The company collected $86,780 cash from accounts receivable. A cash payment of $51,650 was paid on accounts payable. The company paid a $4,500 cash dividend to the stockholders. Uncollectible accounts are estimated to be 1 percent of sales on account. Recorded the accrued interest at December 31, 2018 (see item 5).

[The following information applies to the questions displayed below.] The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, 2017: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 6,140 19,615 $ 2,290 22,200 9,900 18,100 17,665 Transactions for 2018 1. Acquired an additional $11,300 cash from the issue of common stock. 2. Purchased $61,300 of inventory on account. 3. Sold inventory that cost $61,900 for $95,300. Sales were made on account. 4. The company wrote off $1,270 of uncollectible accounts. 5. On September 1, LGS loaned $7,500 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. Paid $14,840 cash for operating expenses. 7. The company collected $86,780 cash from accounts receivable. 8. A cash payment of $51,650 was paid on accounts payable. 9. The company paid a $4,500 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, 2018 (see item 5). LITTLE GROCERY SUPPLIER (LGS) Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common stock $ 18,100 Plus: Stock issued 11,300 Ending common stock $ Beginning retained earnings 17,665 Plus: Net income 17,807 Less: Dividend (4,500) Ending retained earnings Total stockholders' equity $ 29,400 EA 30.972 60,372 LITTLE GROCERY SUPPLIER (LGS) Income Statement For the Year Ended December 31, 2018 Sales revenue Cost of goods sold Gross margin Expenses Operating expenses $ 14,840 Uncollectible accounts expense 953 $ 95,300 61,900 33,400 15,793 Total expenses Operating income interest revenue Net income 17,607 200 $ 17,807 $ 25,730 LITTLE GROCERY SUPPLIER (LGS) Balance Sheet As of December 31, 2018 Assets Cash Accounts receivable $ 26,865 Less: Allowance for doubtful accounts (1,973) Accounts receivable Merchandise inventory Notes receivable Interest receivable Total assets Liabilities Accounts payable 24,892 24,892 21,600 7,500 200 $ 104,814 19,550 19,550 Total liabilities Stockholders' equity Common stock Retained earnings 29,400 30,972 Total stockholders' equity Total liabilities and stockholders' equity 60,372 $ 79,922 LITTLE GROCERY SUPPLIER (LGS) Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Inflow from customers $ 17,807 Outflow for inventory (600) Outflow for expenses $ 17,207 Net cash flow from operating activities Cash flows from investing activities: Outflow for notes receivable $ (7,500) (7,500) 11,300 (4,500) Cash flows from financing activities Inflow from stock issue Outflow for dividend Net cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 6,800 16,507 6,140 22,647 $