The following post closing trial balance was drawn from the accounts
The following post-closing trial balance was drawn from the accounts of Gregg Grocery Supplier (GGS) as of December 31, 2012:


Transactions for 2013
1. GGS acquired an additional $10,000 cash from the issue of common stock.
2. GGS purchased $90,000 of inventory on account.
3. GGS sold inventory that cost $91,000 for $150,000. Sales were made on account.
4. The company wrote off $800 of uncollectible accounts.
5. On September 1, GGS loaned $15,000 to Eden Co. The note had an 8 percent interest rate and a one-year term.
6. GGS paid $22,000 cash for operating expenses.
7. The company collected $152,000 cash from accounts receivable.
8. A cash payment of $96,000 was paid on accounts payable.
9. The company paid a $10,000 cash dividend to the stockholders.
10. Accepted credit cards for sales amounting to $6,000. 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, 2013 (see item 5).

Required
a. Record the above transactions in general journal form.
b. Open T-accounts and record the beginning balances and the 2013 transactions.
c. Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for2013.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help