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Required information [The following information applies to the questions displayed below.) The following post-closing trial b
LITTLE GROCERY SUPPLIER (LGS) Accounting Equation for the Year 2018 - Liabilities - Notes Interest Accounts Receivable Receiv


Reg B Inc Rea B Stmt SE Req B Bal Req B Stmt Cash Flows Stmt Sheet Prepare an income statement for 2018. (Enter all final ans
Prepare a statement of changes in stockholders equity for 2018. (Enter with a minus sign.) LITTLE GROCERY SUPPLIER (LGS) Sta
Req B Inc Stmt Reg B Stmt SES Reg B Bal Sheet Reg B Stmt Cash Flows Prepare a balance sheet for 2018. (Be sure to list the as
Req B Inc Stmt Req B Stmt SE Req B Bal Sheet Req B Stmt Cash Flows Prepare a statement of cash flows for 2018. (Amounts to be
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Answer #1
Little Grocery Supplier (LGS)
Accounting equation for the year 2018
Event Cash + Accounts receivable + Inventory + = Accounts payable + Common stock + Retained earnings
Balance 5710 15770 24760 7695 21200 17345
1 10400 10400
2 61400 61400
3 96200 -62100 34100
4 -1460 -1460
5 9000 9000
6 -14600 -14600
7 72610 -72610
8 -50490 -50490
9 -4500 -4500
10
11 180 -180
28130 37900 24060 27785 31600 30705
Income Statement
Particulars Amount Amount
Sale 96200
Less: COGS 62100
Gross Income 34100
Less: Expenses
Bad debts 1460
Operating Expenses 14600
Interest expense 180 16240
Net Income 17860
Less: Dividend paid 4500
Profit for equity shareholders 13360
Changes in Shareholder Equity
Opening 21200
Add: Share issued 10400
Closing 31600
Retained earnings
Opening 17345
Add: profit for the year 13360
Closing 30705
Balance Sheet
Assets
Cash 28130
Accounts receivable 37900
Inventory 24060
Total' 90090
Liabilities
Accounts payable 27785
Common stock 31600
Retained earnings 30705
Total 90090
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Answer #2

The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1:

 





Cash$6,550
Accounts receivable
16,515
Allowance for doubtful accounts$1,860
Inventory
24,040
Accounts payable
7,080
Common stock
18,400
Retained earnings
19,765

 

Transactions for Year 2

  1. Acquired an additional $9,600 cash from the issue of common stock.

  2. Purchased $59,800 of inventory on account.

  3. Sold inventory that cost $63,800 for $94,600. Sales were made on account.

  4. The company wrote off $930 of uncollectible accounts.

  5. On September 1, LGS loaned $10,000 to Eden Co. The note had an 9 percent interest rate and a one-year term.

  6. Paid $15,010 cash for operating expenses.

  7. The company collected $79,890 cash from accounts receivable.

  8. A cash payment of $50,130 was paid on accounts payable.

  9. The company paid a $5,700 cash dividend to the stockholders.

  10. Uncollectible accounts are estimated to be 2 percent of sales on account.

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

Required

  1. Organize the transaction data in accounts under an accounting equation.

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



Balance SheetIncome Statement
Statement of Cash Flows ($)

Assets ($)=Liabilities ($)+Stockholder's Equity ($)Revenue ($)-Expenses ($)=Net Income ($)Dividends

Cash+Accounts   ReceivableAllowance +Supplies+Notes   recievable+interest   recievable +Prepaid   rent+Land+Inventory=Accounts   Payable+unearned   revenue+Salaries   payable+Common   Stock+Retained   Earnings
Beginning $          6,550 +  $       14,655 $         1,860 + 
 + 
 + 
 + 
 + 
 +  $        24,040 =  $           7,080 + 
 + 
 +  $               18,400 +  $            19,765
 - 
 = 



1 $          9,600 + 

 + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 +  $               9,600 + 

 - 
 = 

 $          9,600fa
2
 + 

 + 
 + 
 + 
 + 
 + 
 +  $        59,800 =  $         59,800 + 
 + 
 + 
 + 

 - 
 = 



3a
 +  $       94,600
 + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 +  $            94,600 $      94,600 - 
 =  $        94,600


3b
 + 

 + 
 + 
 + 
 + 
 + 
 +  $      (63,800) = 
 + 
 + 
 + 
 +  $          (63,800)
 -  $         63,800 =  $      (63,800)


4
 + 
 $           (930) + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 + 

 - 
 = 



5 $      (10,000) + 

 + 
 +  $      10,000 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 + 

 - 
 = 

 $       (10,000)fa
6 $      (15,010) + 

 + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 +  $          (15,010)
 -  $         15,010 =  $      (15,010)
 $       (15,010)oa
7 $        79,890 +  $      (79,890)
 + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 + 

 - 
 = 

 $        79,890oa
8 $      (50,130) + 

 + 
 + 
 + 
 + 
 + 
 + 
 =  $        (50,130) + 
 + 
 + 
 + 

 - 
 = 

 $       (50,130)oa
9 $        (5,700) + 

 + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 +  $            (5,700)
 - 
 = 
 $       5,700 $         (5,700)fa
10
 +  $        (1,892) $         1,892 + 
 + 
 + 
 + 
 + 
 + 
 = 
 + 
 + 
 + 
 +  $            (1,892)
 -  $           1,892 =  $        (1,892)


11
 + 

 + 
 + 
 +  $           300 + 
 + 
 + 
 = 
 + 
 + 
 + 
 +  $               300
 - 
 =  $             300


Ending   Balance $        15,200 +  $       27,473 $         2,822 +  $               -   +  $      10,000 +  $           300 + $0 + $0 +  $        20,040##$16,750 + $0 + $0 + $28,000 + $28,263$94,600 - $80,702 = $14,198$5,700$8,650NC



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answered by: CWF
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