ASAP The following transactions apply to Walnut Enterprises for Year 1, its first year of operations Received $50,000 cash from the issue of a short term note with a 6 percent interest rate and a one year maturity The note was made on April 1, Year 1 Received $130,000 cash plus applicable sales tax from performing services The services are subject to a sales tax rate of 6 percent Paid $62,000 cash for other operating expenses during the year Paid the sales tax due on $110,000 of the service revenue for the year Sales tax on the balance of the revenue is not due until Year 2 Recognized the accrued interest at December 31, Year 1 The following transactions apply to Walnut Enterprises for Year 2 Paid the balance of the sales tax due for Year 1 Received $201,000 cash plus applicable sales tax from performing services The services are subject to a sales tax rate of 6 percent Repaid the principal of the note and applicable interest on April 1, Year 2 Paid $102,500 of other operating expenses during the year Paid the sales tax due on $185,000 of the service revenue The sales tax on the balance of the revenue is not due until Year 3 f 1 Record the Year 2 transactions in general journal form A Paid the balance of the sales tax due for Year 1 Record the transaction B Received $201,000 cash plus applicable sales tax from performing services The services are subject to a sales tax rate of 6 percent Record the transaction C Recognized interest on April 1, Year 2 Record the transaction D Repaid the principal of the note and applicable interest on April 1, Year 2 Record the transaction E Paid $102,500 of other operating expenses during the year Record the transaction F Paid the sales tax due on $185,000 of the service revenue The sales tax on the balance of the revenue is not due until Year 3 Record the transaction f 2 Post the Year 2 transactions to T accounts f 3 Prepare an income statement for Year 2 f 4 Prepare a statement of changes in stockholders equity for Year 2 f 5 Prepare a balance sheet for Year 2 f 6 Prepare a statement of cash flows for Year 2 f 7 Prepare closing entries for Year 2 A Record the closing entry for service revenue B Record the closing entry for expenses f 8 Post the Year 2 closing entries to T accounts f 9 Prepare a post closing trial balance for Year 2

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ASAP The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $50,000 cash from the issue of a short-term

ASAP

The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:

Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.
Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent.
Paid $62,000 cash for other operating expenses during the year.
Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.
Recognized the accrued interest at December 31, Year 1.

The following transactions apply to Walnut Enterprises for Year 2:

Paid the balance of the sales tax due for Year 1.
Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent.
Repaid the principal of the note and applicable interest on April 1, Year 2.
Paid $102,500 of other operating expenses during the year.
Paid the sales tax due on $185,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3.

f-1. Record the Year 2 transactions in general journal form.

A. Paid the balance of the sales tax due for Year 1. Record the transaction.

B. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Record the transaction.

C. Recognized interest on April 1, Year 2. Record the transaction.

D. Repaid the principal of the note and applicable interest on April 1, Year 2. Record the transaction.

E. Paid $102,500 of other operating expenses during the year. Record the transaction.

F. Paid the sales tax due on $185,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. Record the transaction.

f-2. Post the Year 2 transactions to T-accounts. f-3. Prepare an income statement for Year 2. f-4. Prepare a statement of changes in stockholders equity for Year 2. f-5. Prepare a balance sheet for Year 2. f-6. Prepare a statement of cash flows for Year 2. f-7. Prepare closing entries for Year 2.

A. Record the closing entry for service revenue.

B. Record the closing entry for expenses.

f-8. Post the Year 2 closing entries to T-accounts. f-9. Prepare a post-closing trial balance for Year 2.