a. Record the given transactions in general journal form.

b. Open T-accounts and record the beginning balances and the Year 2 transactions.

c. Prepare and income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Year 2.

Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5, 7-6 [The following information applies to the questions displayed below.] The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31 , Year 1. Transactions for Year 2 1. LGS acquired an additional $11,900 cash from the issue of common stock. 2. LGS purchased $61,700 of inventory on account. 3. LGS sold inventory that cost $60,200 for $93,500. Sales were made on account. 4. The company wrote off $1,100 of uncollectible accounts. 5. On September 1, LGS loaned $8,000 to Eden Company The note had an 8 perent interest rate and a one-year term. 6. LGS paid $14,270 cash for operating expenses. 7. The company collected $74,860 cash from accounts receivable. 8. A cash payment of $45,190 was paid on accounts payable. 9. The company paid a $4,300 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,200. The cost of goods sold was $1,900. The credit card company charges a 3 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 3.5 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2