The business was started when the company received $49,500 from the issue of common stock Purchased equipment inventory of $177,000 on account Sold equipment for $209,000 cash (not including sales tax) Sales tax of 6 percent is collected when the merchandise is sold The merchandise had a cost of $134,000 Provided a six month warranty on the equipment sold Based on industry estimates, the warranty claims would amount to 3 percent of sales Paid the sales tax to the state agency on $159,000 of the sales On September 1, Year 1, borrowed $20,000 from the local bank The note had a 6 percent interest rate and matured on March 1, Year 2 Paid $5,500 for warranty repairs during the year Paid operating expenses of $55,500 for the year Paid $125,900 of accounts payable Recorded accrued interest on the note issued in transaction no 6 Prepare the income statement for Year 1 (Round your answers to the nearest dollar amount ) b 2 Prepare the balance sheet for Year 1 (Round your answers to the nearest dollar amount ) b 3 Prepare the statement of cash flows for Year 1 (Amounts to be deducted and losses should be indicated with minus sign Round your answers to the nearest dollar amount )

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The business was started when the company received $49,500 from the issue of common stock. Purchased equipment inventory of $177,000 on account. Sold equipment for

The business was started when the company received $49,500 from the issue of common stock.
Purchased equipment inventory of $177,000 on account.
Sold equipment for $209,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $134,000.
Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales.
Paid the sales tax to the state agency on $159,000 of the sales.
On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.
Paid $5,500 for warranty repairs during the year.
Paid operating expenses of $55,500 for the year.
Paid $125,900 of accounts payable.
Recorded accrued interest on the note issued in transaction no. 6.

Prepare the income statement for Year 1. (Round your answers to the nearest dollar amount.)

b-2. Prepare the balance sheet for Year 1. (Round your answers to the nearest dollar amount.)

b-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses should be indicated with minus sign. Round your answers to the nearest dollar amount.)