1. Miso Corp. borrowed $555,000 from the bank on August 1, 2024. The note had an 6 percent annual rate of interest and matured on April 30, 2025. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Miso pay for interest in 2024? b. What amount of interest expense was recognized on the December 31, 2024 (year end) income statement? c. What amount of total liabilities was reported on the December 31, 2024, balance sheet? d. What total amount of cash was paid to the bank on April 30, 2025, for principal and interest? e. What amount of interest expense was reported on the Year 2 income statement?

f. What amount of cash did Miso pay related to the loan in 2025?

2. The following selected transactions apply to White House Solutions for November and December of 2025. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month.

1. Cash sales for November 2025 were $70,500, plus sales tax of 3.5 percent.

2. Topeca Supply paid the November sales tax to the state agency on December 10, 2025.

3. Cash sales for December 2025 were $61,000, plus sales tax of 3.5 percent.

Required a. Show the effect of the preceding transactions in a horizontal statements model. b. What was the total amount of sales tax paid in 2025? c. What was the total amount of sales tax collected in 2025? d. What amount of sales tax expense will be reported on the Year 1 income statement?

e. Make all entries to 2 decimal places.