The following after-closing trial balance was drawn from the accounts of Oak Timber Co. as of December 31, 2011.

Transactions for 2012
1. Acquired an additional $20,000 cash from the issue of common stock.
2. Purchased $80,000 of inventory on account.
3. Sold inventory that cost $65,000 for $110,000. Sales were made on account.
4. Wrote off $1,400 of uncollectible accounts.
5. On September 1, Oak loaned $12,000 to Pine Co. The note had a 8 percent interest rate and a one-year term.
6. Paid $19,600 cash for salaries expense.
7. Collected $96,000 cash from accounts receivable.
8. Paid $91,000 cash on accounts payable.
9. Paid a $5,000 cash dividend to the stockholders.
10. Estimated uncollectible accounts expense to be 1 percent of sales on account.
11. Recorded the accrued interest at December 31, 2012.
Required
a. Organize the transaction data in accounts under an accounting equation.
b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for2012.

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Dobit Credit Cash Accounts recoivable Allowance for doubtful accounts inventory Accounts payable Common stock Retained earnings $26,000 28,000 $ 3,000 25,000 19,200 20,000 36,800 $79,000 79,000 Totals