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O Required information [The following information applies to the questions displayed below.) The following transactions apply to Walnut Enterprises for Year 1, its first year

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O Required information [The following information applies to the questions displayed below.) The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $43,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $116,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent 3. Paid $70,500 cash for other operating expenses during the year. 4. Paid the sales tax due on $96,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Pald the balance of the sales tax due for Year 1. 2. Received $141,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $83,500 of other operating expenses during the year, 5. Paid the sales tax due on $116,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) Required a. Record the Year 1 transactions in general Journal form. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet View transaction list Journal entry worksheet 5 Received $116,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. Note: Enter debits before credits Debit Event 2 Credit General Journal Cash Service revenue Sales tax payable 8,120 116,000 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Paid the sales tax due on $96,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Note: Enter debits before credits. Event General Journal Debit Credit 4 Record entry Clear entry View general Journal View transaction list Journal entry worksheet

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