Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5,

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The following post-closing list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2:

Cash	$ 5,910
Accounts receivable	19,800
Allowance for doubtful accounts	2,470
Inventory	23,450
Accounts payable	8,355
Common stock	18,500
Retained earnings	19,835

Transactions for Year 3

Acquired an additional $9,400 cash from the issue of common stock.

Purchased $59,200 of inventory on account.

Sold inventory that cost $60,600 for $94,600. Sales were made on account.

The company wrote off $1,330 of uncollectible accounts.

On September 1, LGS loaned $7,500 to Eden Company. The note had an 6 percent interest rate and a one-year term.

Paid $15,700 cash for operating expenses.

The company collected $77,460 cash from accounts receivable.

A cash payment of $51,690 was paid on accounts payable.

The company paid a $4,600 cash dividend to the stockholders.

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

Recorded the accrued interest at December 31, Year 3 (see item 5).

exercise part b

b. Prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for Year 3.