The business was started when the company received $50,000 from the issue of common stock.

purchase equipment inventory for $380,000 on account.

sold equipment for $510,000 cash( not including sales tax). sales tax of 8% is collected when the merchandise is sold. The merchandise has a cost of $330,000.

Provide A 6 month warranty on the equipment sold. Based on industry estimates the warranty claims would amount to 2% of sales.

Pay the sales tax to the state agency on $400,000 of the sales.

On September 1st 2016, borrowed $50,000 from the local bank. The note had a 4% interest rate and return on March 1st 2017.

Payed $6,200 for warranty repairs.

Page operating expenses for $78,000 for the year

paid $250,000 of accounts payable.

record accrued interest on the Note issued in transaction no.6.

Required

Show the effect of these transactions on the financial statement using a horizontal statements model like the one shown here. Use the + 4 increase,- for decrease, and NA for not affected. In the cash flow column, indicate whether the item is an operating an (OA) , investing activity (IA) , or financing activity (FA)

Assets=liabilities+equity	Rev. - exp. =Net inc.	Cash flow
NA +	NA NA NA	+FA