The following trial balance pertains to Benji$$s Grocery as of January $1,$ Year $2.$

Account Title Debit Credit

Cash $ $64,000$

Accounts receivable $12,000$

Inventory $90,000$

Accounts payable $ $7,500$

Common stock $89,000$

Retained earnings $69,500$

Total $ $166,000$ $ $166,000$

The following events occurred in Year $2.$ Assume that Benji$$s uses the periodic inventory method.

Purchased land for $$30,000$ cash.

Purchased merchandise on account for $$230,000,$ terms $1/10$ n$/45.$

Paid freight of $$2,100$ cash on merchandise purchased FOB shipping point.

Returned $$8,600$ of defective merchandise purchased in Event $2.$

Sold merchandise for $$186,000$ cash.

Sold merchandise on account for $$236,000,$ terms $2/10$ n$/30.$

Paid cash within the discount period on accounts payable due on merchandise purchased in Event $2.$

Paid $$28,500$ cash for selling expenses.

Collected $$156,000$ of the accounts receivable from Event $6$ within the discount period.

Collected $$56,000$ of the accounts receivable but not within the discount period.

Paid $$17,100$ of other operating expenses.

A physical count indicated that $$48,300$ of inventory was on hand at the end of the accounting period.

Required:

c$.$ Prepare a schedule of costs of goods sold, income statement, statement of changes in stockholders$$ equity, balance sheet, and statement of cash flows for Year $2$Prepare an income statement for Year $2.$

BENJI'S GROCERY

Income Statement

For the Year Ended December $31,$ Year $2$