Required information 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 $40,500 cash from the issue of a short-term note with a 4 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $116,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Pald $70,000 cash for other operating expenses during the year, 4. Paid the sales tax due on $96,000 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. Recelved $141.000 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. Paid $83,000 of other operating expenses during the year. 5. Pald the sales tax due on $116,000 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 transactions to T-accounts. Cash Sales Tax Payable Beginning Balance Beginning Balance Balance Before Closing Balance Before Closing Interest Payable Notes Payable Beginning Balance Beginning Balance Balance Before Closing Balance Before Closing Service Revenue Operating Expenses Beginning Balance Boginning Balance Balance Before Closing Balance Before Closing Interest Expense Beginning Balance Balance Before Closing 1. Paid the balance of the sales tax due for Year 1. 2. Received $141.000 cash plus applicable sales tax from performing services. The services are subject to a sales of 6 percent 3. Repaid the principal of the note and applicable Interest on April 1. Year 2 4. Paid $83,000 of other operating expenses during the year. 5. Pald the sales tax due on $116,000 of the service revenue. The sales tax on the balance of the revenue is not Year 3 (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) 36 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 balance sheet for Year 1, c-4. Prepare a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req ci Reg C2 Reg C3 Reg C4 es Prepare an income statement for Year 1. WALNUT ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Service revenue Expenses Operating expenses Interest expense Total operating expenses Operating income 0 0 3. Repaid the principal of the note and applicable interest on April 1. Year 2 4. Paid $83,000 of other operating expenses during the year. 5. Pald the sales tax due on $116,000 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.) 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 balance sheet for Year 1 c-4. Prepare a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Reg Ci Reg C2 Reg C3 Req C4 Prepare a statement of changes in stockholders' equity for Year 1. WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 1 Common stock Beginning retained earnings Total stockholders' equity S 0 3. Repaid the principal of the note and applicable interest on April 1, Year 2 4. Paid $83.000 of other operating expenses during the year. 5. Paid the sales tax due on $116,000 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.) 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 balance sheet for Year 1. c-4. Prepare a statement of cash flows for Year 1. 3 Complete this question by entering your answers in the tabs below. Reg CI Reg C2 Reg C3 Reg C4 Prepare a balance sheet for Year 1. WALNUT ENTERPRISES Balance Sheet As of December 31, Year 1 Assets Cash $ 0 Total assets Liabilities Sales tax payable Interest payable Notes payable 0 Total abdities Stockholders' equity