10 Part 2 of 3 ! Required information Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 [The following information applies to the questions displayed below.) 49 The following transactions apply to Ozark Sales for Year 1: oints eBook Hint Ask 1. The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $115,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $140,500 of the sales. 6. On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2. 7. Paid $5,600 for warranty repairs during the year. 8. Paid operating expenses of $53,500 for the year. 9. Paid $125,300 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Exercise 9-8A (Algo) Part b b-1. Prepare the income statement for Year 1. Note: Round your answers to the nearest dollar amount.