The following transactions apply to Comfort Mattress Sales for 2010.

1.	The business was started when the company received $30,000 from the issue of common stock.
2.	Purchased mattress inventory of $200,000 on account.
3.	Sold mattresses for $300,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $150,000.
4.	Provided a six-month warranty on the mattresses sold. Based on industry estimates, the warranty claims would amount to 2 percent of mattress sales.
5.	Paid the sales tax to the state agency on $250,000 of the sales.
6.	On September 1, 2010, borrowed $30,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, 2011.
7.	Paid $4,600 for warranty repairs during the year.
8.	Paid operating expenses of $96,000 for the year.
9.	Paid $175,000 of accounts payable.
10.	Record accrued interest on the note issued in transaction no. 6.

Required:

(a)	Record the above transactions in a horizontal statements model like the following one. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

(b)

Prepare the income statement, balance sheet, and statement of cash flows for 2010. (Leave no cells blank - be certain to enter '0" wherever required. Negative amounts should be indicated by a minus sign. For Income Statement Except "interest expense" individual expenses should be entered as a positive value. Omit the "$" sign in your response.)

(c)	What is the total amount of current liabilities at December 31, 2010? (Omit the "$" sign in your response.)