The following trial balance was prepared for Village Cycle Sales and Service on December 31,

2016, after the closing entries were posted:

Village Cycle had the following transactions in 2017:
1. Purchased merchandise on account for $260,000.
2. Sold merchandise that cost $243,000 on account for $340,000.
3. Performed $80,000 of services for cash.
4. Sold merchandise for $60,000 to credit card customers. The merchandise cost $41,250. The credit card company charges a 5 percent fee.
5. Collected $348,000 cash from accounts receivable.
6. Paid $265,000 cash on accounts payable.
7. Paid $115,000 cash for selling and administrative expenses.
8. Collected cash for the full amount due from the credit card company.
9. Loaned $50,000 to Lee Supply. The note had a 9 percent interest rate and a one-year term to maturity.
10. Wrote off $830 of accounts as uncollectible.
11. Made the following adjusting entries:
(a) Recorded three months€™ interest on the note at December 31, 2017.
(b) Estimated uncollectible accounts expense to be .5 percent of sales on account.
Required
Prepare general journal entries for these transactions; post the entries to T-accounts; and prepare an income statement, a statement of changes in stockholders€™ equity, a balance sheet, and a statement of cash flows for 2017.

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Account Title Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Accounts Payable Common Stock Retained Earnings $46,200 21,300 $ 1,350 85,600 28,000 80,000 43,750 00 $153,100 Totals 1531