Problem 5-31 Comprehensive accounting cycle problem (uses percent of revenue allowance method) LO 5-1, 5-4, 5-5 The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $175. eee 138,000 $ 24,500 451, eee 1e8,eee 515, eee 116, see Tile, Etc. had the following transactions in 2018 1. Purchased merchandise on account for $645.000 2. Sold merchandise that cost $485,000 for $1,020,000 on account 3. Sold for $310.000 cash merchandise that had cost $186,000 4. Sold merchandise for $255,000 to credit card customers. The merchandise had cost $122,000. The credit card company charges a 3 percent fee. 5. Collected $750,000 cash from accounts receivable. 6. Paid $675.000 cash on accounts payable 7. Paid $158.000 cash for selling and administrative expenses 8. Collected cash for the full amount due from the credit card company (see Item 4). 9. loaned $63,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity 10. Wrote off $8.800 of accounts as uncollectible. 11. Made the following adjusting entries (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, 2018 (see item 9). Organize the transaction data in accounts under an accounting equation Enter any decreases to account balances with a minus sgn. Select Check my work there is no effect on. TILE, ETC., INC. Horizontal Statements Model Liabilities Notes Interest Accounts Receivable Received Payable Event Cash Accounts + Accounts Receivable Merchandise Allowance - Inventory Equity Common Retained Stock Earnings Accounting Titles for Retained Earnings 00 Reg 1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Prepare an income statement for 2018. TILE, ETC., INC. Income Statement For the Year Ended December 31, 2018 l Gross margin Operating expenses LO Total operating expenses Operating income Add: Non-operating items Interest revenue Net income Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Prepare a statement of changes in stockholders' equity for 2018. TILE, ETC., INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common stock Plus: Stock issued Ending common stock Beginning retained earnings Plus: Net income Ending retained earnings Total stockholders' equity Req A Req B1 Req B2 Req B3 Req B4 Prepare a balance sheet for 2018. (Be sure to list the assets in the orde TILE, ETC., INC. Balance Sheet As of December 31, 2018 Balanc + Assets L Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity Req A Req B1 Req B2 Req B3 Reg Ba Prepare a statement of cash flows for 2018. (Amounts to be deducted should be i TILE, ETC., INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance