! Required information Problem 9-20A Account for short-term debt and sales tax-two accounting cycles LO 9-1, 9-2 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 $50,000 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 April 1. Year 1. 2. Received $130.000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent 3. Pald $62,000 cash for other operating expenses during the year 4. Pald the sales tax due on $110,000 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 $201.000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent 3. Repaid the principal of the note and applicable interest on April 1. Year 2 4. Pald $102,500 of other operating expenses during the year 5. Paid the sales tax due on $185,000 of the service revenue The sales tax on the balance of the revenue is not due until Year 3 Journal entry worksheet Received $50,000 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 April 1, Year 1. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Note: Enter debits before credits. Event General Journal Debit Credit 2. Record entry Clear entry View general journal Journal entry worksheet Paid $62,000 cash for other operating expenses during the year. Note: Enter debits before credits Event General Journal Debit Credit 3 Record entry Clear entry View general journal . Journal entry worksheet Paid the sales tax due on $110,000 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. General Journal Event 4 Debit Credit Record entry Clear entry View general journal Journal entry worksheet