Exercise $7-15$A $($Static$)$ Comprehensive single$-$cycle problem LO $7-1,7-5,7-6$

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The following post$-$closing trial balance was drawn from the accounts of Little Grocery Supplier $($LGS$)$ as of December $31,$ Year $1.$

Debit Credit

Cash $ $9,000$

Accounts receivable $41,000$

Allowance for doubtful accounts $ $2,500$

Inventory $78,000$

Accounts payable $21,000$

Common stock $50,000$

Retained earnings $54,500$

Totals $ $128,000$ $ $128,000$

Transactions for Year $2$

LGS acquired an additional $$20,000$ cash from the issue of common stock.

LGS purchased $$85,000$ of inventory on account.

LGS sold inventory that cost $$91,000$ for $$160,000.$ Sales were made on account.

The company wrote off $$900$ of uncollectible accounts.

On September $1,$ LGS loaned $$18,000$ to Eden Company The note had an $8$ percent interest rate and a one$-$year term.

LGS paid $$19,000$ cash for operating expenses.

The company collected $$161,000$ cash from accounts receivable.

A cash payment of $$92,000$ was paid on accounts payable.

The company paid a $$5,000$ cash dividend to the stockholders.

Accepted credit cards for sales amounting to $$7,000.$ The cost of goods sold was $$4,000.$ The credit card company charges a $4$ percent service charge. The cash has not been received.

Uncollectible accounts are estimated to be $1$ percent of sales on account.

Recorded the accrued interest at December $31,$ Year $2($see item $5).$

Exercise $7-15$A $($Static$)$ Part a

Required

a$.$ Record the above transactions in general journal form. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$