9Comprehensive single-cycle problem LO 5-2, 5-4

The following post-closing trial balance was drawn from the accounts of Hardwood Timber Co. as of December 31, 2013:

		Debit			Credit
Cash	$	5,550
Accounts receivable		16,185
Allowance for doubtful accounts				$	1,630
Inventory		24,000
Accounts payable					8,395
Common stock					19,100
Retained earnings					16,610
Totals	$	45,735		$	45,735

Transactions for 2014

1.	Acquired an additional $11,000 cash from the issue of common stock.
2.	Purchased $61,600 of inventory on account.
3.	Sold inventory that cost $62,600 for $93,900. Sales were made on account.
4.	Wrote off $930 of uncollectible accounts.
5.	On September 1, Hardwood loaned $9,500 to Pine Co. The note had a 8 percent interest rate and a one-year term.
6.	Paid $14,910 cash for salaries expense.
7.	Collected $70,080 cash from accounts receivable.
8.	Paid $51,530 cash on accounts payable.
9.	Paid a $5,600 cash dividend to the stockholders.
10.	Estimated uncollectible accounts expense to be 2.50 percent of sales on account.
11.	Recorded the accrued interest at December 31, 2014.

Required

a .

Organize the transaction data in accounts under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".) ACCOUNTING EQUATION FOR THE YEAR 2014 Cash + Accounts Receivable - Allowance + Merchandise Inventory + Notes Receivable + Notes Receivable + Interest Receivable = Liabilities/Accounts Payable + Stockholders Equity/Common Stock = Retained Earnings Account Titles for Retained Earning Bal 1 2 3a 3b 4 5 6 7 8 9 10 11