Help The following transactions apply to Ozark Sales for Yeart 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales 5. Pald the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2 7. Paid $6.200 for warranty repairs during the year 8. Pald operating expenses of $78,000 for the year 9. Paid $250,000 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 1? D D G 207 PM 16 5 8 E R T U D F C VB N. M Alt Help Save & Ex Check Semen model mer any reas to account balances and can now wa manus in the cash row corn, we all blank if there is no effect. Do not round Intermediate calculations and round your answers to the nearest whole dollar amounts. Not all calls OZARK SALES Horizontal Statement Model Income Statement Balance Sheet Liabilities Sales Tax Warranty Payable Payable Net Stockholders' Equity Common Stock Earnings Statement of Cash Flows Interest Payable yable Notes Payable Retained Revenue Expense 0+ o ( 9 5 6 8 0 E R E Y U F G . J 1 Sved 3 Req A Stint Sheet Cash Flows Reqc Prepare the income statement for Year 1. (Round your answers to the nearest whole dollar.) 0 noints OZARK SALES Income Statement For the Year Ended December 31, Year 1 eBook Hint References Expenses Total operating expenses Mc Graw D D G 207 PM 16 5 8 E R T U D F C VB N. M Alt Help Save & Ex Check Semen model mer any reas to account balances and can now wa manus in the cash row corn, we all blank if there is no effect. Do not round Intermediate calculations and round your answers to the nearest whole dollar amounts. Not all calls OZARK SALES Horizontal Statement Model Income Statement Balance Sheet Liabilities Sales Tax Warranty Payable Payable Net Stockholders' Equity Common Stock Earnings Statement of Cash Flows Interest Payable yable Notes Payable Retained Revenue Expense 0+ o ( 9 5 6 8 0 E R E Y U F G . J 1 Sved 3 Req A Stint Sheet Cash Flows Reqc Prepare the income statement for Year 1. (Round your answers to the nearest whole dollar.) 0 noints OZARK SALES Income Statement For the Year Ended December 31, Year 1 eBook Hint References Expenses Total operating expenses Mc Graw
