Required information [The following information applies to the questions displayed below.) The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $48,500 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $205,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $130,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $155,000 of the sales. 6. On September 1, 2018, borrowed $21,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, 2019. 7. Paid $5,800 for warranty repairs during the year. 8. Paid operating expenses of $53,000 for the year. 9. Paid $125,400 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required information No. tatement Cash Merchandise Inventory Accounts Payable Sales Tax Payable Warranty Payable Interest Payable Notes Payable Common Stock Retained Revenue Earnings Expense 1. 48,500 + Inc + + + 2. + + (177,000) = 48,500 + + + + + 177,000 + + + + . 205,000 + + + + + + + 3b + + 130,000/= 205,000 205.000 + + + + 4. + + + + + + + 5. + + + + + + 6. + + + + 7. + + + + + + + + + + + + + + + + + + + 8 + + + 9. ++ + + + 4 + 10 + + + + +++ + Bal. 253,500 + (47,000) II 177.000 + 0 + 0 + 0 + 0 + 48,500 + 205.000 205,000 ho yuncu Milion Model Income Statement Stockholders' Equity Common Stock Revenue Retained Earnings Expense Net Income Statement of Cash Flows 48,500 + TT ++ 48,500 FA 205,000 205,000 + + + + ++ + + + + + + + + . + + + + 48,500 + 205,000 205.000 0 = 0 48.500 Prey 3 3 COD 4 3 5 of 5 Next