Nbsploaned 50000 to lee supply the note had an 9 percent

Question

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

Village Cycle had the following transactions in 2014: 

1. Purchased merchandise on account for $260,000. 
2. Sold merchandise that cost $243,000 on account for $340,000. 
3. Performed $80,000 of services for cash. 
4. Sold merchandise for $60,000 to credit card customers. The merchandise cost $41,250. The credit card company charges a 5 percent fee. 
5. Collected $348,000 cash from accounts receivable. 
6. Paid $265,000 cash on accounts payable. 
7. Paid $115,000 cash for selling and administrative expenses. 
8. Collected cash for the full amount due from the credit card company (see item 4). 
9. Loaned $50,000 to Lee Supply. The note had an 9 percent interest rate and a one year term to maturity. 
10. Wrote off $830 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 .5 percent of sales on account.

Required:

Prepare general journal entries for these transactions; post the entries to T-accounts; and prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for 2014.