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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

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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 $43,000 cash from the issue of a short-term note with a 5 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 7 percent. 3. Paid $70,500 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. 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 tax rate of 7 percent 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $83,500 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.) Journal entry worksheet Received $116,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. Note: Enter debits before credits. Debit General Journal Event Credit 2 Record entry Clear entry View general journal Required information Journal entry worksheet B D E Paid $70,500 cash for other operating expenses during the year, Note: Enter debits before credits General Journal Debit Credit Event 3 Record entry Clear entry View general journal Required information Journal entry worksheet E 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. Note: Enter debits before credits. Event General Journal Debit Credit 4 View general journal Record entry Clear entry Required information Journal entry worksheet

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