The following post closing trial balance was drawn from the accounts of Spruce Timber Co. as of December 31, 2012.
Debit Credit
Cash $6,000
Accounts receivable 18,000
Allowance for doubtful accounts $2,000
Inventory 24,000
Accounts Payable 9,200
Common stock 20,000
Retained earnings 16,800
Totals $48,000 $48,000
Transactions for 2013
1. Acquired an additional $10,000 cash from the issue of common stock
2. Purchased $60,000 of inventory on account
3. Sold inventory that cost $62,000 for $95,000. Sales were made on account
4. Wrote off $1,100 of uncollectible accounts
5. On September 1, Spruce loaned $9,000 to Pine Co. The note had a 7% interest rate and a one year term.
6. Paid $15, 800 cash for salaries expense
7. Collected $80,000 cash from accounts receivable
8. Paid $52,000 cash on accounts payable
9. Paid a $5,000 cash dividend to teh stockholders
10. Estimated uncollectible accounts expense to be 1% of sales on account
11. Recorded teh accrued interest at December 31, 2013
a. Organize the transaction data in accounts under on accounting equation
b. Prepare an income statement, a statement of changes in stockholders’ equity, a balance sheet, and a statement of cash flows for 2013
what is the answer for ‘a’ and ‘b’?