Reference no: EM131881686

Organize the transaction data in accounts under an accounting equation, using a Horizontal Statement Model. (Do not round intermediate calculations and round your answers to nearest whole dollar amount.

Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)

The following trial balance was prepared for Village Cycle Sales and Service on December 31, 2013, after the closing entries were posted:

Account Title	Debit			Credit
Cash	$	89,000
Accounts Receivable		19,000
Allowance for Doubtful Accounts				$	5,000
Inventory		97,000
Accounts Payable					45,000
Common Stock					92,000
Retained Earnings					63,000
Totals	$	205,000		$	205,000

Village Cycle had the following transactions in 2014:

1. Purchased merchandise on account for $274,000.

2. Sold merchandise that cost $227,898 on account for $371,000.

3. Performed $90,000 of services for cash.

4. Sold merchandise for $76,000 to credit card customers. The merchandise cost $47,500. The credit card company charges a 7.00 percent fee.

5. Collected $367,000 cash from accounts receivable.

6. Paid $278,000 cash on accounts payable.

7. Paid $129,000 cash for selling and administrative expenses.

8. Collected cash for the full amount due from the credit card company (see item 4).

9. Loaned $61,000 to Lee Supply. The note had a 9.50 percent interest rate and a one-year term to maturity.

10. Wrote off $620 of accounts as uncollectible.

11. Made the following adjusting entries:

(a) Recorded three months' interest on the note at December 31, 2014 (see item 9).

(b) Estimated uncollectible accounts expense to be 0.60 percent of sales on account.