2 Exercise 7-21A (Algo) Current liabilities LO 7-1, 7-2, 7-4, 7-10 The following transactions apply to Ozark Sales for Year 1 33.34 points Help *Book Hil References 1. The business was started when the company received $49,500 from the issue of common stock 2. Purchased equipment inventory of $175,000 on account. 3. Sold equipment for $203,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,500. 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 $153,500 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.1 7. Paid $5,900 for warranty repairs during the year. 8. Paid operating expenses of $53.500 for the year 9. Paid $124,400 of accounts payable. 0. Recorded accrued interest on the note issued in transaction no. 6. Required a. Record the given transactions in a horizontal statements model b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 c. What is the total amount of current liabilities at December 31, Year 17 Complete this question by entering your answers in the tabs below. Req Inc Reg A Stmt Reg B Bal Sheet Reg 8 Stmt Cash Flows RegC Sub Check my work Record the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow calumn