The following transactions apply to Oklahoma Corp. for 2018: 1. The business was started when Oktahoma Corp. received 2. Purchased $1,235,000 of merchandise on account. 3. Sold merchandise for $1,560,000 cash (not including salos tax). Salos tax of is collected when the merchandise is sold. The merchandise had a cost of $422,500 from the lisue of common stock. Good idea to spit this into two accounting entries - think chapter 3. Hint : 3a and 3b 8% $942,500 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty payable claims would arnount to 5. Paid the sales tex of 3% of merchandise sales excluding sales tax. Think of it as a contingent liability 6. On September 1,2018, borrowed 8% to the state apency on $1,040,000 of the sales, (not the entire amount) 8% $162,500 from the local bank. The note had a 7 Paid annual interest rate and matures on August 31,2019. $884,000 of accounts payable. 8 Paid 9 Paid $26,000 for warranty repairs during the year. This is the payment of warranties payable. 10. Recorded acorued intorest po0 cash in operating expenses for the year. 10. Recorded acorued interest payable at the end of the yoar for 12/31. REQUIRED a. Record the above transactions in a horizontal statements model, Students will have to rename asset accounts in the model to accommodate the 5 liablity accounts in problem. b. Prepare the income statement, balance sheet, and statement of cash flows for 2018. c. What is the total amount of current liablities at December 31, 2018