Question 2 (of 9) [The following information applies to the questions displayed below. The following transactions apply to Midsouth Equipment Sales Corp. for 2014: 1. The business was started when Midsouth received $60,000 from the issue of common stock 2. Purchased $160,000 of merchandise on account. 3. Sold merchandise for $220.000 cash (not including sales tax), Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $140,000 4 Provided a six-month warranty on the merchandise sold. Based on industry estimates ty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 4 percent of merchandise sales. 5. Paid the sales tax to the state agency on $180,000 of the sales. 6. On September 1, 2014, borrowed $40,000 from the local bank. The note had a 6 percent interest rate and matures on March 1, 2015. 7. Paid $6,600 for warranty repairs during the year. 8. Paid operating expenses of $61,000 for the year 9. Paid $145,000 of accounts payable. 10. Recorded accrued interest at the end of the year. value 2.44 points Required a. Record the above transactions in a horizontal statements model like the following one. In the Cash Flow