Question
Can you please help with this horizontal statement model? I'm not able to figure it out. Required information The following transactions apply to Ozark Sales
Can you please help with this horizontal statement model? I'm not able to figure it out.
Required information
The following transactions apply to Ozark Sales for 2018:
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The business was started when the company received $50,000 from the issue of common stock.
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Purchased equipment inventory of $177,000 on account.
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Sold equipment for $209,500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $134,500.
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Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales.
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Paid the sales tax to the state agency on $159,500 of the sales.
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On September 1, 2018, borrowed $20,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, 2019.
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Paid $5,500 for warranty repairs during the year.
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Paid operating expenses of $55,500 for the year.
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Paid $124,300 of accounts payable.
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Recorded accrued interest on the note issued in transaction no. 6.
Required
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Record the given transactions in a horizontal statements model like the following one. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts.)
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier
5th Edition
111900294X, 978-1119002949
