The following transactions apply to Ozark Sales for 2016: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, 2016, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, 2017 7. Paid $6,200 for warranty repairs during the year. 8. Pald operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. 2. value: 1.42 points Required a. Show the effect of these transactions on the financial statements using a horizontal statements model. 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 is recorded as an example. Event Assets Equity = Liabilities + NA Revenue - Expenses - NA Net Income NA Cash Flow FA NA 3. value: 1.42 points b. Prepare the journal entries for the above transactions and post them to the appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers nearest dollar amount.) View transaction list Journal entry worksheet The business was started when the company received $50,000 from the issue of common stock. Note: Enter debits before credits. Event General Journal Debit Credit 01 Record entry Clear entry View general Journal Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Sales Tax Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal Warranties Payable Interest Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Notes Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Sales Revenue Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal. Operating Expenses Warranty Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Interest Expense Beg. Bal. End. Bal. C-2. Prepare the balance sheet for 2016. (Round your answers nearest dollar amount.) OZARK SALES Balance Sheet As of December 31, 2016 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity d. What is the total amount of current liabilities at December 31, 2016? Total current liabilities Hints eBook & Resources