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 7 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $119,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent 3. Paid $71,500 cash for other operating expenses during the year. 4. Pald the sales tax due on $99,000 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. Received $144,000 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. Pald $84,500 of other operating expenses during the year. 5. Pald the sales tax due on $119,000 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. Prepare a balance sheet, statement of changes in stockholders' equity, Income statement, and statement of cash flows for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be Indicated with a minus slgn.) WALNUT ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Service revenue Expenses Interest expense Total operating expenses 0 0 $ 0 WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 1 Common stock Beginning retained earnings 0 Total stockholders' equity $ 0 SES Balance Sheet As of December 31, Year 1 Assets Cash $ 0 Total assets Liabilities Sales tax payable Interest payable Notes payable 0 Total liabilities Stockholders' equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: Inflow from customers Inflow from sales tax $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 1. Pald the balance of the sales tax due for Year 1. 2. Received $144,000 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 $84,500 of other operating expenses during the year. 5. Paid the sales tax due on $119,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your Intermedlate and final answers to the nearest whole dollar amount.) d. Prepare the closing entries and post them to the T-accounts. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet 1 2 Record the closing entry for service revenue. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal e. Prepare a post-closing trial balance WALNUT ENTERPRISES Post Closing Trial Balance As of December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ $ 0 Journal entry worksheet Paid the balance of the sales tax due for Year 1. Note: Enter debits before credits. Event General Journal Debit Credit 01 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 7 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $119,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent 3. Paid $71,500 cash for other operating expenses during the year. 4. Pald the sales tax due on $99,000 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. Received $144,000 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. Pald $84,500 of other operating expenses during the year. 5. Pald the sales tax due on $119,000 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. Prepare a balance sheet, statement of changes in stockholders' equity, Income statement, and statement of cash flows for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be Indicated with a minus slgn.) WALNUT ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Service revenue Expenses Interest expense Total operating expenses 0 0 $ 0 WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 1 Common stock Beginning retained earnings 0 Total stockholders' equity $ 0 SES Balance Sheet As of December 31, Year 1 Assets Cash $ 0 Total assets Liabilities Sales tax payable Interest payable Notes payable 0 Total liabilities Stockholders' equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: Inflow from customers Inflow from sales tax $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 1. Pald the balance of the sales tax due for Year 1. 2. Received $144,000 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 $84,500 of other operating expenses during the year. 5. Paid the sales tax due on $119,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your Intermedlate and final answers to the nearest whole dollar amount.) d. Prepare the closing entries and post them to the T-accounts. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet 1 2 Record the closing entry for service revenue. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal e. Prepare a post-closing trial balance WALNUT ENTERPRISES Post Closing Trial Balance As of December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ $ 0 Journal entry worksheet Paid the balance of the sales tax due for Year 1. Note: Enter debits before credits. Event General Journal Debit Credit 01