Question #2

T-Accounts

Required information IThe following information appwes to the questionis displayed below. The following transactions apply to Walnut Enterprises for Year 1 , its tirst year of operations: 1. Recelved 541,000 cash from the issue of a shour-tarm note wath a 6 percent interest rale and a bne-year maturhy The. note was made on April 1, Yeat 1 . 2. Received \$118,000 cash plus applicable sales tax from perfotming services. The servees are subject to a sales taz tate of 6 percent. 3. Paid 370,000 cash for other operating experises during the year: 4. Pald the sales tax due on $96,000 of the service revenue for the year Sales thx on the balance of the tevenun is not due unta Veat 2 5. Recognired the acctued interest at December 31, Year 1. The following transactions apply to Wainut Enterpcises for Year 2 1. Paid the balance of the sales tax due for Year 1 2. Received $143,000 cash plus applicable soles tax from perfrming services. The services are subject to a sales tax rate of 6 percent 3. Repaid the principal of the note and applicable interest on Apnil 1, Yoar 2 . 4. Paid $83,000 of other operating expenses during the yeor. 5. Paid the sales tax due on $118,000 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) b. Post the transoctions to t-accounts