Question #3

The following transactions apply to Wainut Enterprises for Year 1, its first year of operations: 1. Received $41,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April1, Year 1. 2. Received $118,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Paid $70,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $98,000 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. Paid the balance of the sales tax due for Year 1. 2. Received $143,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Repaid the principol of the note and applicable interest on April1, Year 2. 4. Paid $83,000 of other operating expenses during the year. 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 Yeat 3 . (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) c-1. Prepare an income statement for Year 1. c-2. Prepare a statement of changes in stockholders' equity for Year 1. c-3. Prepare a bulance sheet for Year 1 . c-4. Prepare a statement of cash flows for Year 1