Required information Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5, [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 Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 5,060 17,245 2,295 24,980 10,130 21,000 13,860 Transactions for Year 3 1. Acquired an additional $9,100 cash from the issue of common stock. 2. Purchased $60,100 of inventory on account. 3. Sold inventory that cost $62,300 for $96,600. Sales were made on account. 4. The company wrote off $1,450 of uncollectible accounts. 5. On September 1, LGS loaned $10,500 to Eden Company. The note had an 8 percent interest rate and a one-year term. 6. Paid $15,740 cash for operating expenses. 7. The company collected $84,960 cash from accounts receivable. 8. A cash payment of $50,610 was paid on accounts payable. 9. The company paid a $4,400 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). Exercise 7-15A (Algo) 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. Complete this question by entering your answers in the tabs below. Req B Income Statement Req B Statement Stockholders Req B Req B Balance Statement of Cash Flows Sheet Prepare an income statement for Year 3. Note: Enter all final answers in whole dollars. LITTLE GROCERY SUPPLIER (LGS) S < Prev 32 of 9 Next >
Required information Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5, [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 Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 5,060 17,245 2,295 24,980 10,130 21,000 13,860 Transactions for Year 3 1. Acquired an additional $9,100 cash from the issue of common stock. 2. Purchased $60,100 of inventory on account. 3. Sold inventory that cost $62,300 for $96,600. Sales were made on account. 4. The company wrote off $1,450 of uncollectible accounts. 5. On September 1, LGS loaned $10,500 to Eden Company. The note had an 8 percent interest rate and a one-year term. 6. Paid $15,740 cash for operating expenses. 7. The company collected $84,960 cash from accounts receivable. 8. A cash payment of $50,610 was paid on accounts payable. 9. The company paid a $4,400 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). Exercise 7-15A (Algo) 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. Complete this question by entering your answers in the tabs below. Req B Income Statement Req B Statement Stockholders Req B Req B Balance Statement of Cash Flows Sheet Prepare an income statement for Year 3. Note: Enter all final answers in whole dollars. LITTLE GROCERY SUPPLIER (LGS) S < Prev 32 of 9 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
![Required information
Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5,
[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
Accounts receivable
Allowance for doubtful accounts
Inventory
Accounts payable
Common stock
Retained earnings
$ 5,060
17,245
2,295
24,980
10,130
21,000
13,860
Transactions for Year 3
1. Acquired an additional $9,100 cash from the issue of common stock.
2. Purchased $60,100 of inventory on account.
3. Sold inventory that cost $62,300 for $96,600. Sales were made on account.
4. The company wrote off $1,450 of uncollectible accounts.
5. On September 1, LGS loaned $10,500 to Eden Company. The note had an 8 percent interest rate and a one-year term.
6. Paid $15,740 cash for operating expenses.
7. The company collected $84,960 cash from accounts receivable.
8. A cash payment of $50,610 was paid on accounts payable.
9. The company paid a $4,400 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).
Exercise 7-15A (Algo) 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.
Complete this question by entering your answers in the tabs below.
Req B Income
Statement
Req B
Statement
Stockholders
Req B
Req B Balance Statement of
Cash Flows
Sheet
Prepare an income statement for Year 3.
Note: Enter all final answers in whole dollars.
LITTLE GROCERY SUPPLIER (LGS)
S
< Prev
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of 9
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Transcribed Image Text:Required information
Exercise 7-15A (Algo) Comprehensive single-cycle problem LO 7-1, 7-5,
[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
Accounts receivable
Allowance for doubtful accounts
Inventory
Accounts payable
Common stock
Retained earnings
$ 5,060
17,245
2,295
24,980
10,130
21,000
13,860
Transactions for Year 3
1. Acquired an additional $9,100 cash from the issue of common stock.
2. Purchased $60,100 of inventory on account.
3. Sold inventory that cost $62,300 for $96,600. Sales were made on account.
4. The company wrote off $1,450 of uncollectible accounts.
5. On September 1, LGS loaned $10,500 to Eden Company. The note had an 8 percent interest rate and a one-year term.
6. Paid $15,740 cash for operating expenses.
7. The company collected $84,960 cash from accounts receivable.
8. A cash payment of $50,610 was paid on accounts payable.
9. The company paid a $4,400 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).
Exercise 7-15A (Algo) 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.
Complete this question by entering your answers in the tabs below.
Req B Income
Statement
Req B
Statement
Stockholders
Req B
Req B Balance Statement of
Cash Flows
Sheet
Prepare an income statement for Year 3.
Note: Enter all final answers in whole dollars.
LITTLE GROCERY SUPPLIER (LGS)
S
< Prev
32
of 9
Next >
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