chapter 7 #2 need assistance with these

Exercise 7-21A (Algo) Current liabilities LO 7-1,7-2, 7-4, 7-10 The following transactions apply to Orark Sales for Yeart 1. The business was started when the company received $48,000 from the issue of common stock 2. Purchased equipment inventory of $174,000 on account 3. Sold equipment for $196,000 cash (not including sales tax Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $121000 4. Provided a six month warranty on the equipment sold. Based on Industry estimates, the warranty claims would amount to 4 percent 5. Paid the sales tax to the state agency on $146.000 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, Year 2 7. Paid $5,500 for warranty repairs during the year 8. Pald operating expenses of $55,500 for the year. 9. Pald $124700 of accounts payable. 10. 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? Complete this question by entering your answers in the tabs below. Reg Recine Strat Real Sheet Rea Sot Cash Flows Rec Record the given transactions in a horizontal statements model (Enter any decreases to account balances and cash outlows within in the Cash Flowcom, indicate whe financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round you to the earthole amounts of all cells OZARK SALES Hortional Statement Model Event No Balance Sheet Liabetes Sales The Warranty Payable Payal Stockholders' Equity Sent of Cash Accounts Payable Assets Merchandise Cash Inventory 48.000 174.000 209.720 - Interest Payable Notes Payable Retained Expense Stock Earni 48.000 1. 2 Ja 3b 174.000 53.720 1000 - - 4 6 7 & 9 10 Bal 257,720 174,000 174,000 13.720 40.000 195.000 Regine > Req A Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Req Prepare the income statement for Year 1. (Round your answers to OZARK SALES Income Statement For the Year Ended December 31, Year 1 Expenses Total operating expenses 0