The following post-closing list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2: $ 6,460 18,860 Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable 1,805 25,530 10,880 Common stock 21,200 16,965 Retained earnings Transactions for Year 3 1. Acquired an additional $10,100 cash from the issue of common stock. 2. Purchased $59,300 of inventory on account. 3. Sold inventory that cost $63,000 for $93,300. Sales were made on account. 4. The company wrote off $1,110 of uncollectible accounts. 5. On September 1, LGS loaned $11,000 to Eden Co. The note had an 7 percent interest rate and a one-year term. 6. Paid $15,840 cash for operating expenses. 7. The company collected $71,880 cash from accounts receivable. 8. A cash payment of $52,850 was paid on accounts payable. 9. The company paid a $4,200 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 3 (see item 5).
The following post-closing list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2: $ 6,460 18,860 Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable 1,805 25,530 10,880 Common stock 21,200 16,965 Retained earnings Transactions for Year 3 1. Acquired an additional $10,100 cash from the issue of common stock. 2. Purchased $59,300 of inventory on account. 3. Sold inventory that cost $63,000 for $93,300. Sales were made on account. 4. The company wrote off $1,110 of uncollectible accounts. 5. On September 1, LGS loaned $11,000 to Eden Co. The note had an 7 percent interest rate and a one-year term. 6. Paid $15,840 cash for operating expenses. 7. The company collected $71,880 cash from accounts receivable. 8. A cash payment of $52,850 was paid on accounts payable. 9. The company paid a $4,200 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 3 (see item 5).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
practice help

Transcribed Image Text:**Educational Context: Preparing Financial Statements**
To effectively analyze the financial position of a company, it's crucial to prepare several financial documents, such as an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows. Here, we focus on constructing a "Statement of Changes in Stockholders' Equity" for a fictional company, Little Grocery Supplier (LGS), for the year ended December 31, Year 3.
### Key Components of the Statement of Changes in Stockholders' Equity
#### **Table: Statement Structure**
- **Title and Timeframe**:
- **Company**: Little Grocery Supplier (LGS)
- **Document**: Statement of Changes in Stockholders' Equity
- **Period**: For the Year Ended December 31, Year 3
#### **Financial Entries**:
1. **Beginning Common Stock**: Initial common stock amount at the beginning of the year (amount not specified and needs to be completed).
2. **Ending Common Stock**: Final common stock amount at the end of the year. In this template, it is indicated as $0, suggesting this value is yet to be entered or calculated.
3. **Beginning Retained Earnings**: Initial retained earnings at the start of the year (amount not specified and needs to be completed).
4. **Ending Retained Earnings**: Final retained earnings at the end of the year. In this template, it is indicated as $0, which also suggests a placeholder for the actual figure.
5. **Total Stockholders' Equity**: Represents the total equity at year-end, currently marked as $0, indicating it is not yet determined.
#### **Additional Instructions**:
- All final answers should be entered in whole dollars.
- Deductibles should be marked with a minus sign to ensure clarity in reporting negative figures.
**Note**: The table structure and placeholders emphasize the need for user input to complete the financial statement, highlighting interactive elements within educational financial software or websites.
![**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:
| Account | Amount |
|---------------------------------|-----------|
| Cash | $ 6,460 |
| Accounts receivable | 18,860 |
| Allowance for doubtful accounts | 1,805 |
| Inventory | 25,530 |
| Accounts payable | 10,880 |
| Common stock | 21,200 |
| Retained earnings | 16,965 |
**Transactions for Year 3**
1. Acquired an additional $10,100 cash from the issue of common stock.
2. Purchased $59,300 of inventory on account.
3. Sold inventory that cost $63,000 for $93,300. Sales were made on account.
4. The company wrote off $1,110 of uncollectible accounts.
5. On September 1, LGS loaned $11,000 to Eden Co. The note had a 7 percent interest rate and a one-year term.
6. Paid $15,840 cash for operating expenses.
7. The company collected $71,880 cash from accounts receivable.
8. A cash payment of $52,850 was paid on accounts payable.
9. The company paid a $4,200 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 3 (see item 5).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf9c49b9-ebc3-4254-9011-25d5959a8511%2Fabb50d09-80ba-41ef-bd2e-558a34b3e016%2Fsqz7h8a_processed.png&w=3840&q=75)
Transcribed Image Text:**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:
| Account | Amount |
|---------------------------------|-----------|
| Cash | $ 6,460 |
| Accounts receivable | 18,860 |
| Allowance for doubtful accounts | 1,805 |
| Inventory | 25,530 |
| Accounts payable | 10,880 |
| Common stock | 21,200 |
| Retained earnings | 16,965 |
**Transactions for Year 3**
1. Acquired an additional $10,100 cash from the issue of common stock.
2. Purchased $59,300 of inventory on account.
3. Sold inventory that cost $63,000 for $93,300. Sales were made on account.
4. The company wrote off $1,110 of uncollectible accounts.
5. On September 1, LGS loaned $11,000 to Eden Co. The note had a 7 percent interest rate and a one-year term.
6. Paid $15,840 cash for operating expenses.
7. The company collected $71,880 cash from accounts receivable.
8. A cash payment of $52,850 was paid on accounts payable.
9. The company paid a $4,200 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 3 (see item 5).
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education