dont give answer in image format Exercise 7-15A (Static) Comprehensive single-cycle problem LO 7-1, 7-5, 7-6[The following information applies to the questions displayed below.]The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31,Year 1.CashAccounts receivableAllowance for doubtful accountsInventoryAccounts payableCommon stockRetained earningsTotalsTransactions for Year 2Debit$ 9,00041,00078,000$ 128,000Credit$ 2,50021,00050,00054,500$ 128,0001. LGS acquired an additional $20,000 cash from the issue of common stock.2. LGS purchased $85,000 of inventory on account.3. LGS 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. LGS 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. Accepted credit cards for sales amounting to $7,000. The cost of goods sold was $4,000. The credit card companycharges a 4 percent service charge. The cash has not been received.11. Uncollectible accounts are estimated to be 1 percent of sales on account.12. Recorded the accrued interest at December 31, Year 2 (see item 5). Exercise 7-15A (Static) Comprehensive single-cycle problem LO 7-1, 7-5, 7-6[The following information applies to the questions displayed below.]The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31,Year 1.CashAccounts receivableAllowance for doubtful accountsInventoryAccounts payableCommon stockRetained earningsTotalsTransactions for Year 2Debit$ 9,00041,00078,000$ 128,000Credit$ 2,50021,00050,00054,500$ 128,0001. LGS acquired an additional $20,000 cash from the issue of common stock.2. LGS purchased $85,000 of inventory on account.3. LGS 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. LGS 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. Accepted credit cards for sales amounting to $7,000. The cost of goods sold was $4,000. The credit card companycharges a 4 percent service charge. The cash has not been received.11. Uncollectible accounts are estimated to be 1 percent of sales on account.12. Recorded the accrued interest at December 31, Year 2 (see item 5).

Journal Entry :— It is an act of recording transaction in books of account when transaction…

Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals Transactions for Year 2 Debit $ 9,000 41,000 78,000 $ 128,000 Credit $ 2,500 21,000 50,000 54,500 $ 128,000 1. LGS acquired an additional $20,000 cash from the issue of common stock. 2. LGS purchased $85,000 of inventory on account. 3. LGS 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. LGS 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. Exercise 7-15A (Static) Part a 9. The company paid a $5,000 cash dividend to the stockholders. 10. 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. 11. Uncollectible accounts are estimated to be 1 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2 (see item 5). 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.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q