Help Save 8 Som Check my work B Required information The following information applies to the questions displayed below) The following transactions apply to Ozark Sales for Yeart 1. The business was started when the company received $48.000 from the issue of common stock 2. Putchesed equipment inventory of $176.500 on account 3. Sold equipment for $204,000 cash not including sales tax Sales tax of 7 percent is collected when the merchandises sold. The merchandise had a cost of $129.000 4. Provided a six month warranty on the equipment sold. Based on industry estimates the warranty claims would amount 10 4 percent of sales 5. Paid the sales tax to the state agency $154,000 of the sales. 6. On September 1 Year borrowed $20,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2 7. Paid $5.600 for warranty repairs during the year 8. Paid Operating expenses of $54,500 for the year 9. Paid $125.800 of accounts payable 10. Recorded accrued interest on the noto issued in transaction no. 6 Required a. Show the effects of these transactions on the financial statements using a horizontal statements model (Use a to indicate increase oro - for decrease. In the Statement of Cash Flows column indicate whether the item is an operating activity investing activity Alor financing activity (FA) Columns for events that have no effect on any of the elements should be let blank.) (Note: Not all cells will require an input.) Check my work B 13 Required 2. Show the effects of these transactions on the financial statements using a horizontal statements model. (Use a + to indicate increase ora - for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA). Investing activity (A), or financing activity (FA) Columns for events that have no effect on any of the elements should be left blank ) (Note: Not all cells will require an input.) Balance Sheet Effect of Transactions on Financial Statements Income Statement Equity Revenue Expenses Statement of Cash Flows Event Assets Liabilities Net Income FA 1. 2 3a. 3. + + 5 6 7 8 9 10