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 Co. 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% 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. ! Required information LITTLE GROCERY SUPPLIER Income Statement For the Year Ended December 31, Year 2 0 Operating expenses Total operating expenses 0 0 $ 0 LITTLE GROCERY SUPPLIER Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 Total stockholders' equity $ 0 Required information LITTLE GRUUERT SUPPLIER Balance Sheet As of December 31, Year 2 Assets 0 Total Assets $ Liabilities Total Liabilities 0 Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0 LITTLE GROCERY SUPPLIER Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows From Operating Activities: $ 0 Net Cash Flow from Operating Activities Cash Flows From Investing Activities: 0 Net Cash Flow from Investing Activities Cash Flows From Financing Activities: 0 Net Cash Flow from Financing Activities Net Change in Cash Ending Cash Balance $ 0 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 Co. 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% 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. ! Required information LITTLE GROCERY SUPPLIER Income Statement For the Year Ended December 31, Year 2 0 Operating expenses Total operating expenses 0 0 $ 0 LITTLE GROCERY SUPPLIER Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 Total stockholders' equity $ 0 Required information LITTLE GRUUERT SUPPLIER Balance Sheet As of December 31, Year 2 Assets 0 Total Assets $ Liabilities Total Liabilities 0 Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0 LITTLE GROCERY SUPPLIER Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows From Operating Activities: $ 0 Net Cash Flow from Operating Activities Cash Flows From Investing Activities: 0 Net Cash Flow from Investing Activities Cash Flows From Financing Activities: 0 Net Cash Flow from Financing Activities Net Change in Cash Ending Cash Balance $ 0
