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

Skip to question

[The following information applies to the questions displayed below.]

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

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

Transactions for Year 3

1. Acquired an additional $20,000 cash from the issue of common stock.
2. Purchased $85,000 of inventory on account.
3. Sold inventory that cost $91,000 for $160,000. Sales were made on account.
4. The company wrote off $900 of uncollectible accounts.
5. On September 1, LGS loaned $18,000 to Eden Company. The note had an 8 percent interest rate and a one-year term.
6. Paid $19,000 cash for operating expenses.
7. The company collected $161,000 cash from accounts receivable.
8. A cash payment of $92,000 was paid on accounts payable.
9. The company paid a $5,000 cash dividend to the stockholders.
10. Uncollectible accounts are estimated to be 1 percent of sales on account.
11. Recorded the accrued interest at December 31, Year 3 (see item 5).

Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for lear 3. Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 3. . Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows fo Year 3. Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows for Year 3. Note: Amounts to be deducted and cash outflows should be indicated with a minus sign. b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 3. Complete this question by entering your answers in the tabs below. Prepare a balance sheet for Year 3 . Note: Be sure to list the assets in the order of their liquidity. Required: a. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells require input. . Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 3. Complete this question by entering your answers in the tabs below. Prepare a statement of changes in stockholders' equity for Year 3. Note: Enter deductibles with a minus sign