Exercise $9-13$A $($Algo$)$ Comprehensive single$-$cycle problem LO $9-1,9-2,9-4,9-5$

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The following transactions apply to Park Company for Year $1$:

Received $$28,000$ cash from the issue of common stock.

Purchased inventory on account for $$144,000.$

Sold inventory for $$173,000$ cash that had cost $$106,000.$ Sales tax was collected at the rate of $6$ percent on the inventory sold.

Borrowed $$22,800$ from First State Bank on March $1,$ Year $1.$ The note had a $6$ percent interest rate and a one$-$year term to maturity.

Paid the accounts payable $($see transaction $2).$

Paid the sales tax due on $$153,000$ of sales. Sales tax on the other $$20,000$ is not due until after the end of the year.

Salaries for the year for one employee amounted to $$26,000.$ Assume the Social Security tax rate is $6$ percent and the Medicare tax rate is $1\mathrm{.}5$ percent. Federal income tax withheld was $$5,000.$

Paid $$2,700$ for warranty repairs during the year.

Paid $$12,000$ of other operating expenses during the year.

Paid a dividend of $$4,900$ to the shareholders.

Adjustments:

The products sold in transaction $3$ were warranted. Park estimated that the warranty cost would be $6$ percent of sales.

Record the accrued interest at December $31,$ Year $1.$

Record the accrued payroll tax at December $31,$ Year $1.$ Assume no payroll taxes have been paid for the year and that the unemployment tax rate is $6\mathrm{.}0$ percent $($federal unemployment tax rate is $0\mathrm{.}60$ percent and the state unemployment tax rate is $5\mathrm{.}40$ percent on the first $$7,000$ of earnings per employee$).$

Exercise $9-13$A $($Algo$)$ Part c

c$-1.$ Prepare an income statement for Year $1.$

c$-2.$ Prepare a statement of changes in stockholders$$ equity for Year $1.$

c$-3.$ Prepare a balance sheet for Year $1.$

c$-4.$ Prepare a statement of cash flows for Year $1.$