Question: The following post closing trial balance was drawn from the accounts

The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier
(LGS) as of December 31, 2015:
Transactions for 2016
1. LGS acquired 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, 2016.
Required
a. Record the above transactions in general journal form.
b. Open T-accounts and record the beginning balances and the 2016 transactions.
c. Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for 2016.

View Solution:


Sale on SolutionInn
Sales20
Views291
Comments
  • CreatedApril 20, 2015
  • Files Included
Post your question
5000