The foliowing transactions apply to Park Company for Year 1 1. Received $30,000 cash from the issue of common stock 2. Purchased inventory on account for $143.000 3. Sold inventory for $172,000 cash that had cost $105,000. Sales tax was collected at the rate of 7 percent on the inventory sold 4. Bortowed $20,400 from First State Bank on March 1, Year 1 . The note had a 7 percent interest rate and a one-year term to maturity 5. Paid the accounts payable (see transaction 2 ). 6. Paid the sales tax due on $152,000 of saies. Sales tax on the other $20,000 is not due until after the end of the year 7. Salaries for the year for one employee amounted to $31,000 Assume the Social Security tax rate is. 6 percent and the Medicare tax rate is 1.5 percent. Federal income tax withheld was $5.200 8. Paid $2,500 for warranty repairs during the yeat. 9. Paid $12,500 of other operating expenses during the yeat 10. Paid a dividend of $5,200 to the shereholders Adjustments: 11. The products sold in transactoon 3 were warranted. Park estimated that the warranty cost would be 4 percerit of sales 12. Record the accrued interest at December 3t. Year 1 13. Record the accrued payrol tax at December 31, Year 1. Assume no payroll taxes have been paid for the year and that the unemployment tax rate is 6.0 percent dederal unemployment tax tate is 0.60 percent and the state unempioyment tax rate is 5.40 percent on the first 57,000 of eamings per employee) Exercise 9-13A (Algo) Port c c.1. Piepare an income statement for Year 1 e-2. Prepare a statement of changes in stociholders equity for Year 1 e-3. Prepare a balance sneet for Year 1 c.4. Prepare a statement of cash flows for Year 1