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 on December 31, Year 1.

f-3. Prepare an income statement for Year 1. f-4. Prepare a statement of changes in stockholders equity for Year 1. f-5. Prepare a balance sheet for Year 1. f-6. Prepare a statement of cash flows for Year 1. f-7. Prepare closing entries for Year 1.

A. Record the closing entry for service revenue. B. Record the closing entry for expenses.

f-8. Post the Year 1 closing entries to T-accounts. f-9. Prepare a post-closing trial balance for Year 1.