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Required information [ The following information applies to the questions displayed below. ] The following transactions apply to Ozark Sales for Year 1 : The

Required information
[The following information applies to the questions displayed below.]
The following transactions apply to Ozark Sales for Year 1:
The business was started when the company received $49,000 from the issue of common stock.
Purchased equipment inventory of $174,500 on account.
Sold equipment for $205,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $130,500.
Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales.
Paid the sales tax to the state agency on $155,500 of the sales.
On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2.
Paid $5,700 for warranty repairs during the year.
Paid operating expenses of $53,500 for the year.
Paid $125,400 of accounts payable.
Recorded accrued interest on the note issued in transaction no.6.
\table[[OZARK SALES],[Income Statement],[For the Year Ended December 31, Year 1],[Sales revenue,,$,205,500],[Cost of goods sold,,,(130,500)
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