Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

accounting- journal entries on third picture, please record all transactions from the first picture The following transactions apply to Ozark Sales for Year 1: 1.

accounting- journal entries on third picture, please record all transactions from the first picture
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $49,500 from the issue of common stock. 2. Purchased equipment inventory of $178,000 on account. 3. Sold equipment for $192.000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $117.000 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 $142,000 of the sales. 6. On September 1, Year 1, borrowed $21.500 from the local bank. The note had a 6 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 $52.000 for the year, 9. Paid $125,100 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required a. Show the effect of these transactions on the financial statements using a horizontal statements model. Use - for increase - for decrease, and NA for not affected. In the Cash Flow column indicate whether the item is an operating activity (OA), Investing activity (A), or financing activity (FA) or not affected (NA). The first transaction is recorded as an example. (Leave no cells blank.be certain Required information NA), or financing activity (FA) or not affected (NA). The first transaction is recorded as an example. (Leave no cells blank.be certain to select "NA" wherever required.) Event Assets Liabilities - Equity Revenue - Expenses = Net income Statement of Cash Flow FA C-1. Prepare the income statement for Year 1. (Round your answers to the nearest dollar amo OZARK SALES Income Statement For the Year Ended December 31, Year 1 Expenses Total operating expenses d. What is the total amount of current liabilities at December 31 Year 1? (Round your answer to the nearest dollar amount.) Total current liabilities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Impact Of Auditor Rotation On Audit Quality A Field Study From Egypt

Authors: Diana Mohamed

1st Edition

3848425378, 978-3848425372

More Books

Students also viewed these Accounting questions

Question

How to Estimate a Population Mean or Proportion

Answered: 1 week ago

Question

Draw a planar graph with 5 nodes and 8 edges.

Answered: 1 week ago

Question

1. Are my sources credible?

Answered: 1 week ago

Question

3. Are my sources accurate?

Answered: 1 week ago

Question

1. Is it a topic you are interested in and know something about?

Answered: 1 week ago