The following selected transactions were taken from the books of Ripley Company for Yeart 1. on February 1 Year 1, borrowed $46,000 cash from the focal bank. The note had a 7 percent interest rate and was due on June 1 Year 1 2. Cash sales for the year amounted to $230,000 plus sales tax at the rate of 8 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales 4. Paid the sales tax to the state sales tax agency on $200,000 of the sales 5. Paid the note due on June 1and the related interest 0. on November , Year 1, borrowed $47.000 cash from the local bank. The nose had a 9 percent interest rate and a one-year term to 7. Pald $3,100 in warranty repairs 8. A customer has filed a lawsuit against Ripley for $110.000 for breach of contract. The company attorney does not believe the suit has merit matunity inces Required a. Answer the following questions 1. What amount of cash did Ripley pay for interest during Year 13 2. What amount of interest expense is reported on Ripley's income statement for Year 1? 3. What is the amount of warranty expense for Year 12 b. Post the abilities transactions to accounts and prepare the current oblities section of the balance sheet of December 31 Year c. Show the effect of these transactions on the financial statements using a horizontal statements modelike the one shown next Use - for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OAL Investing activity (A), or financing activity (FA) or not affected (NA) The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Required Required 1 T Required 12 Account Bal Sheet Required AS Required A2 Required What amount of cash did Ripley pay for interest during Year 17 (Pound your art dollar amount) Required A2 > The following selected transactions were taken from the books of Ripley Company for Year 13 1. On February 1 Year 1, borrowed $46,000 cash from the local bank. The note had o 7 percent interest rate and was due on Ju Year 1 2. Cash sales for the year amounted to $230,000 plus sales tax at the rate of 8 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales, 4. Paid the sales tax to the state sales tax agency on $200,000 of the sales 3. Paid the note due on June 1 and the related interest. 6. On November 1. Year 1. borrowed $47.000 cash from the local bank. The note had a 9 percent interest rate and a one-year ter maturity 7. Paid $3,100 in Warranty repairs. 8. A customer has filed a lawsuit against Ripley for $110,000 for breach of contract. The company attorney does not believe the se has merit Required 2. Answer the following questions: 1. What amount of cash did Ripley pay for interest during Year 1? 2. What amount of interest expense is reported on Ripley's income statement for Year 1? 3. What is the amount of warranty expense for Year 12 b. Post the liabilities transactions to T-accounts and prepare the current liabilities section of the balance sheet at December 31. Year c. Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown next. U + for increase. - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (c investing activity (1A). or financing activity (FA) or not affected (NA). The first transaction has been recorded as an example, Complete this question by entering your answers in the tabs below. Required A1 Required te Required A3 Required DLT Required 02 Bal Sheet Required c What amount of interest expense is reported on Rupley's income statement for Year 17 (Round your answer nearest dollar mount) internet pense The followang selected transactions were taken from the books of Ripley Company for Yeart: 1. On February 1. Year 1, borrowed $46.000 cash from the local bank. The note had a 7 percent interest rate and was due Year 2. Cash sales for the year amounted to $230,000 plus sales tax at the rate of 8 percent 3. Ripley provides a 90-day warranty on the merchandise sold, The warranty expense is estimated to be 3 percent of sales 4. Paid the sales tax to the state sales tax agency on $200,000 of the sales 3. Paid the note due on June 1and the related interest 6. On November 1 Year 1, borrowed $47.000 cash from the local bank. The note nad 9 percent interest rate and a one-ye maturity 7. Paid $3.100 In warranty repairs 8. A customer has filed a lawsuit against Ripley for $110,000 for breach of contract. The company attorney does not believe has merit. Required 4. Answer the following questions 1. What amount of cash did Ripley pay for interest during Year 12 2. What amount of interest expense is reported on Ripley's income statement for Year 12 3. What is the amount of warranty expense for Year 1? b. Post the liabilities transactions to accounts and prepare the current liabilities section of the balance sheet at December 3 c. Show the effect of these transactions on the financial statements using a horizontal statements modelike the one shown + for increase. - for decrease, and NA for not affected. In the Cash Flow column indicate whether the item is an operating ac investing activity (A), or financing activity (FA or not affected (NA). The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Required C Required Al Required A2 Roured A Required BIT Required B2 Bal Sheet What is the amount of warranty expense for Year 17 View following selected transactions were taken from the books of Ripley Company for Yeart On February 1 Year 1, borrowed $46,000 cash from the local bank. The note had a 7 percent interest rate and was due on June 1. Year Cash sales for the year amounted to $230,000 plus sales tax at the rate of 8 percent Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales Paid the sales tax to the state sales tax agency on $200,000 of the sales Paid the note due on June 1 and the related interest. On November 1 Year 1, borrowed $47.000 cash from the local bank. The note roda 9 percent interest rate and a one-year term 10 maturity Pald $3,100 in warranty repairs A customer nas filed a lawsuit against Ripley for $110.000 for breach of contract. The company attorney does not believe the sult has merit cquired Answer the following questions - What amount of cash did Ripley pay for interest during Year 1 What amount of Interest expense is reported on Ripley's income statement for Year 12 What is the amount of warranty expense for Year 17 Post the liabilities transactions to T-accounts and prepare the current liabilities section of the balance sheet at December 31 Year Show the effect of these transactions on the financial statements using a horizontal statements mode ke the one shown next. Use for increase. - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA) nvesting activity (IA), or financing activity (FA) or not affected INA. The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Required A1 Required Required A2 Required AB Required 1 T Required 82 Account Bal Sheet Post the abilities transactions to T-accounts at December 31. Year 1. Sales Tax Payats Interest Payable Beg Bal Beg Bal End End B Warranty Payable Nors Payable Beg B Beg Bal End End Bal The following selected transactions were taken from the books of Ripley Company for Year 1 1. On February 1 Year 1, borrowed $46,000 cash from the local bank. The note had a 7 percent interest rate and was due or Year1 2. Cash sales for the year amounted to $230,000 plus sales tax at the rate of 8 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales. 4. Paid the sales tax to the state sales tax agency on $200,000 of the sales 3. Paid the note due on June 1 and the related interest 6. On November 1, Year 1, borrowed $47,000 cash from the local bank. The note had a 9 percent interest rate and a one yea maturity 7. Paid $3,100 in warranty repairs. 8. A customer has filed a lawsuit against Ripley for $110,000 for breach of contract. The company attorney does not believe has mer Required a. Answer the following questions 1. What amount of cash did Ripley pay for interest during Year 1? 2. What amount of interest expense is reported on Ripley's income statement for Year 12 3. What is the amount of warranty expense for Year 12 b. Post the labilities transactions to T-accounts and prepare the current liabilities section of the balance sheet at December 31 c. Show the effect of these transactions on the financial statements using a horizontal Statements model like the one shown + for increase. - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating acth Investing activity (IA), or financing activity (FA) or not affected (NA) The first transaction has been recorded as an example, Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required Bit Required 82 Account Bal Sheet Required Prepare the current liabilities section of the balance sheet at December 31. Year 1. (Round your answers nearest dollar amount.) RIPLEY COMPANY Balance Sheet (partial) As of December 31, Year 1 Current liabilis Toral current liabilities The following selected transactions were taken from the books of Ripley Company for Yeart 1. On February 1. Year 1, borrowed $46,000 cash from the local bank. The note had a 7 percent interest rate and was due on June 1. Year 1. 2. Cash sales for the year amounted to $230,000 plus sates tax at the rate of 8 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales 4. Pald the sales tax to the state sales tax agency on $200,000 of the sales. 5. Paid the note due on June 1 and the related interest 8. on November 1, Year 1, borrowed $47.000 cash from the local bank. The note had a 9 percent interest rate and a one-year term to maturity 7. Pald $3,100 In warranty repairs. 8. A customer has filed a lawsuit against Ripley for $110.000 for breach of contract. The company attorney does not believe the suit has merit. Required 2. Answer the following questions: 1. What amount of cash did Ripley pay for interest during Year 12 2. What amount of interest expense is reported on Ripley's income statement for Year 1? 3. What is the amount of warranty expense for Year 12 b. Post the liabilities transactions to Traccounts and prepare the current liabilnies section of the balance sheet at December 31, Year 1 c. Show the effect of these transactions on the financial statements using a honzontal statements model like the one shown next. Use for increase. - for decrease, and NA for not affected. In the Cash Flow column. Indicate whether the item is an operating activity (OA). Investing activity (IA) or financing activity (FA) or not affected (NA) The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A Required BIT Required 02 Required Account Bal Sheet Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown next. Use + for increase - for decrease, and NA for not affected. In the Cash Flow column. Indicate whether the item is an operating activity (OA). Investing activity (IA), or financing a (PA) or not affected (NA). The first transaction has been recorded as an example. Show Libilities Antes Revenue Cash Flow Expense NA Net Income NA NA NA 1 2 3 4 5 0 7